2nd Apr 2007 07:02
Balfour Beatty PLC02 April 2007 2 April 2007 BALFOUR BEATTY COMPLETES ACQUISITION OF ======================================= CENTEX CONSTRUCTION IN THE US ============================= Balfour Beatty plc, the leading engineering, construction, services andinvestment group, announces the completion of its acquisition of CentexConstruction, the leading US building construction company, for a cashconsideration of $362 million. The acquisition, which was announced on 1 February, is a major step forward inthe Group's long-term strategy of building a major domestic presence in the USon Balfour Beatty's UK model and gives Balfour Beatty pro-forma annual USrevenues 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 usprofitable critical mass in the US in a core Balfour Beatty business and bringssubstantial new business development opportunities. We anticipate that it alsowill make a strong, immediate contribution to growth and generate significantvalue for our shareholders." Balfour Beatty is already a US leader in selected design, project and programmemanagement markets through Heery International and has established a presence inthe growing US private finance market through Balfour Beatty Capital. Theacquisition of Centex Construction offers Balfour Beatty additional potential togrow 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 andBalfour Beatty Capital but also through its civil engineering business, BalfourBeatty Infrastructure Inc, and Balfour Beatty Rail Inc. Centex Construction, which has been renamed Balfour Beatty Construction LLC withimmediate effect, joins the Balfour Beatty Group with significant net cash inits balance sheet. It is anticipated that the acquisition will be significantly earnings per shareenhancing in 2007 and thereafter(1) will generate significant value for BalfourBeatty shareholders. The acquisition has been funded from Balfour Beatty'sexisting cash resources. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes (1) Statements as to earnings per share enhancement do not constitute a profitforecast and should not be interpreted to mean that Balfour Beatty's earningsper share will necessarily exceed or match those of any prior year. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Balfour Beatty