Balfour Beatty, the international infrastructure group, today announces that it has reached an agreement to sell parts of its German Rail business (the ‘disposal group’) to Rhomberg Sersa Rail Group of Austria. This disposal continues our stated intention to divest all of our mainland European rail businesses, the results of which are reported in the Group’s discontinued operations.
The transaction comprises the German track and plant and Austrian businesses. The businesses have been sold for gross proceeds of £6 million, but net cash consideration will be approximately zero once the cash transferring with the business is taken into account. Completion is expected in the first quarter of 2015 and is conditional, inter alia, on competition clearance.
The disposal group generated approximately £80 million of revenue in 2013 with reported losses before tax, within discontinued operations, of £8 million. Approximately 600 employees will transfer across with the business. Gross assets at 27 June 2014 were £36 million. The disposal will result in a discontinued non-underlying loss on disposal of approximately £25 million.
In addition, we recently completed the disposal of the German Railroad Tuning Business for £1 million, broadly equating to net asset value. Discussions with potential buyers for the remaining parts of the German and Italian rail businesses are ongoing.
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Notes to editors:
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 and the USA, with developing businesses in Australia, Canada, the Middle East and South East Asia. With proven expertise in delivering infrastructure critical to support communities and society today and in the future, our key market sectors focus on infrastructure - transportation (roads, rail and aviation), power and energy, water, and complex buildings (both commercial and social). Balfour Beatty employs 40,000 people around the world.