1st May 2008 07:02
Balfour Beatty PLC01 May 2008 BALFOUR BEATTY COMPLETES ACQUISITION OF GMH'S MILITARY PPP ACCOMMODATION BUSINESS IN THE US FOR $350.5 MILLION CASH Balfour Beatty, the international engineering, construction, investment andservices group, announces the completion of its acquisition of the military PPPaccommodation business from GMH Communities Trust, a US real estate investmenttrust, for a cash consideration of $350.5 million. The acquisition, which was first announced on 12 February, secures a reliable,long-term profit and cash flow from a high-quality portfolio of PPP concessionsin the US and adds an experienced and successful management team to developBalfour Beatty's presence in the growing US PPP market. Commenting on the acquisition, Balfour Beatty plc Chief Executive, Ian Tyler,said: "The acquisition of GMH's military accommodation business is central toimplementing our US strategy of building a high-quality, domestic US businesssimilar to our very successful UK model. It adds a major, high-quality PPPbusiness to our US group in one of our key target market sectors. GMH will be anexcellent springboard into other emerging PPP and support service sectors in theUS market, will immediately enhance earnings(1) and generate significant valuefor our shareholders." GMH is a leader in its market, having secured rights to 15 concessions at 42bases, and is responsible for the development, renovation, financing, operationand management of military accommodation projects for the US Department of theArmy, US Department of the Navy and US Department of the Air Force. Its concessions are executed in partnership with Balfour Beatty ConstructionLLC, acquired by Balfour Beatty plc in March 2007. The acquisition has been funded from Balfour Beatty's existing cash resources. The business will operate as Balfour Beatty Communities. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com (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:
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