Balfour Beatty, the international infrastructure group, today announces that it has reached an agreement with a subsidiary of CBRE Group, Inc. to sell Heery International (Heery), its full-service US engineering and programme management, architecture and interior design firm.
The transaction, which is subject to certain contractual consents, is expected to complete before year end for a total cash consideration of $57 million (c.£42 million), subject to working capital and debt adjustments.
For the year ended 31 December 2016, Heery’s gross assets were £78.2 million, net assets were £21.5 million and profit before tax was £2.4 million. This transaction will release funds to Balfour Beatty to be used in the normal course of business.
Balfour Beatty acquired a 50% interest in Heery in 1986, which it increased to 100% in 1990. In certain US markets, however, acting as Programme Manager on a contract precludes a company from bidding as General Contractor due to perceived conflicts of interest. The sale of Heery removes this constraint from the Group’s US Buildings operation, while enabling it to partner with Heery on a wide range of potential projects going forward.
Leo Quinn, Group Chief Executive, said: “We continue to focus and strengthen the Group in our chosen markets. This transaction is another example of maximising shareholder value at the appropriate time and value, while improving our strategic position. We look forward to continuing our strong working relationship with CBRE.”
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Notes to editors:
- Balfour Beatty (www.balfourbeatty.com) is a leading international infrastructure group. With 30,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth. We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings.
- Our main geographies are the UK, US and the Far East. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics’ Aquatic Centre, Hong Kong’s first Zero Carbon building, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.