Balfour Beatty PLC
18 January 2006
18 January 2006
MOWLEM PLC
AND THE ACQUISITION OF CHARTER AND EDGAR ALLEN
==============================================
Balfour Beatty, the international engineering, construction and services group,
announces today that, further to its announcement on 12 December 2005, it will
not be making an offer for Mowlem Plc (see note below).
Balfour Beatty also announces that it has reached a binding agreement, subject
to due diligence, with Carillion plc that, subject to the latter's acquisition
of Mowlem Plc, Balfour Beatty will acquire from Carillion two of Mowlem's
businesses, namely Charter, the US construction management company, and Edgar
Allen, the UK rail track products manufacturer.
It is anticipated that the businesses will be purchased for a combined
consideration of approximately £20 million.
Charter, based in Texas, provides construction management, design and build and
construction services to public and private customers. It is a leading builder
of educational facilities in the state. In 2004, it had sales of approximately
£95 million and operating profits of £2 million. Its acquisition will complement
Heery Inc, Balfour Beatty's US project and programme management specialist,
which is a nationwide leader in the primary and secondary education market.
Edgar Allen manufactures switches, crossings and other rail track products. In
2004, it had sales of £25 million and made profits of £2 million. The
acquisition of Edgar Allen will strengthen Balfour Beatty's leading position as
a specialist in the design, manufacture and supply of track products through
Balfour Beatty Rail Track Systems.
ENDS
Enquiries to:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com
Note
----
Balfour Beatty acknowledges that, pursuant to this announcement, Balfour Beatty
and any person acting in concert with it will, except with the consent of the
Panel, be bound by the restrictions contained in Rule 2.8 of the City Code for
six months. However, Balfour Beatty reserves the right to make an offer for
Mowlem if Carillion's proposed acquisition of Mowlem is not completed and then
only with the agreement or recommendation of the board of Mowlem.
Notwithstanding the above, the Panel has consented to Balfour Beatty entering
into the agreements with Carillion described above.
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.