Media

News Releases

Balfour Beatty completes Acquisition of Centex Construction in the US

Balfour Beatty plc, the leading engineering, construction, services and investment group, announces the completion of its acquisition of Centex Construction, the leading US building construction company, for a cash consideration of $362 million.

The acquisition, which was announced on 1 February, is a major step forward in the Group’s long-term strategy of building a major domestic presence in the US on Balfour Beatty’s UK model and gives Balfour Beatty pro-forma annual US revenues of approximately $3.5 billion.

Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler, said:

"Centex Construction is a high-quality building company which gives us profitable critical mass in the US in a core Balfour Beatty business and brings substantial new business development opportunities.  We anticipate that it also will make a strong, immediate contribution to growth and generate significant value for our shareholders."

Balfour Beatty is already a US leader in selected design, project and programme management markets through Heery International and has established a presence in the growing US private finance market through Balfour Beatty Capital.  The acquisition of Centex Construction offers Balfour Beatty additional potential to grow in its target building and investment markets, as well as a strong, well-positioned and well-managed business.

Balfour Beatty is already established in the US not only through Heery and Balfour Beatty Capital but also through its civil engineering business, Balfour Beatty Infrastructure Inc, and Balfour Beatty Rail Inc.

Centex Construction, which has been renamed Balfour Beatty Construction LLC with immediate effect, joins the Balfour Beatty Group with significant net cash in its balance sheet.

It is anticipated that the acquisition will be significantly earnings per share enhancing in 2007 and thereafter1; will generate significant value for Balfour Beatty shareholders.  The acquisition has been funded from Balfour Beatty’s existing cash resources.

ENDS

Enquiries to:

Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com

Notes

1 Statements as to earnings per share enhancement do not constitute a profit forecast and should not be interpreted to mean that Balfour Beatty’s earnings per share will necessarily exceed or match those of any prior year.