Disposal

RNS Number : 3470L

Balfour Beatty PLC

09 August 2013

 



9 August 2013

BALFOUR BEATTY ANNOUNCES THE SALE OF ITS UK FACILITIES MANAGEMENT BUSINESS

Balfour Beatty, the international infrastructure group, today announces that it has signed a binding agreement to sell its UK facilities management business ("UK FM business") to GDF Suez Energy Services for approximately £190 million in cash. 

The cash consideration will be reduced by any net debt transferring with the business and may be subject to certain adjustments based on completion accounts and in relation to pension liabilities. Completion is expected in the fourth quarter of 2013 and is conditional on inter alia, EU competition clearance. Net cash inflow upon completion is expected to be in excess of £150 million.

The proceeds of the transaction will be used in the first instance to reduce borrowings, and over time, to fund investments consistent with Balfour Beatty's strategy.

Commenting on the sale, Andrew McNaughton, CEO of Balfour Beatty, said:

"The sale of the UK FM business represents an important step in our evolution as we intensify our focus on infrastructure.  In addition to finding a good new home for the business, its customers and employees, this transaction has achieved good value and will enable us to allocate more resource to target growth sectors and markets in the future."

Operating as Balfour Beatty WorkPlace, the UK FM business is a leading provider of outsourced integrated services and total facilities management solutions with capabilities including facilities management, business process outsourcing and energy services. The business has a number of major contracts in the UK with clients including the Department for Work and Pensions, HM Revenue & Customs and North East Lincolnshire Council as well as the Romec joint venture with the Royal Mail Group, which provides a wide range of technical and building services to Royal Mail, Post Office and Parcelforce Worldwide. The business is expected to continue to provide facilities management services to Balfour Beatty's current portfolio of social infrastructure PPP assets in the UK and to collaborate with the Group on the development of its investments in the future.

The UK FM business, the performance of which is reported within the Group's Support Services segment, generated £482 million of revenue in 2012 with operating profit of £21m, and has over 9,000 employees. Gross assets at 31 December 2012 were £197m.

Citigroup Global Markets Limited is acting as financial adviser to Balfour Beatty.

ENDS

Analyst/investor enquiries:

Basak Kotler

Balfour Beatty plc

Tel. [phone]

Media enquiries:

Maitland

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[e-mail]

Notes to Editors:

1.                  Balfour Beatty (www.balfourbeatty.com) is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.

 

Our businesses draw on more than 100 years of experience to deliver the highest levels of quality, safety and technical expertise to our clients principally in the UK, the US, Southeast Asia and the Middle East. We continue to develop our business in key growth markets in South Africa, Australia, Canada, Brazil and India.

 

With proven expertise in delivering infrastructure critical to support communities and society today and in the future, our key market sectors include transportation (roads, rail and aviation), power and energy, mining, water and social infrastructure such as hospitals and schools.

 

Balfour Beatty employs 50,000 people around the world.

2.                 GDF SUEZ Energy Services is a strong European operator in energy efficiency and environmental services, with a presence in over 30 countries and 1,300 offices worldwide. Through its Cofely business, it is able to offer effective and efficient energy and environmental solutions, through multi-technical and facilities services, to its customers in commercial, industrial and public sectors. GDF SUEZ’s Energy Services has 78,200 employees and revenues of €14.7 billion in 2012.

 

END

 

 

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