19th Mar 2008 07:00
Balfour Beatty PLC19 March 2008 19 March 2008 BALFOUR BEATTY ACQUIRES DEAN & DYBALL, A LEADING UK REGIONAL CONTRACTOR, FOR £45 MILLION Further step in established strategy of expanding Balfour Beatty's regional presence in the UK K E Y P O I N T S - Provides strong, profitable presence in civil engineering markets in the southern half of England and in Wales - Excellent fit in terms of geography, culture and project type - Augments regional building activities of Mansell and Cowlin and complements Birse Rail - Strong, well-respected brand with a quality reputation - Core activities have a high level of repeat business, a substantial part of which is in long-term partnerships and frameworks - Experienced management with a track record of successful growth - Earnings enhancing in its first full year* * The statement as to earnings per share enhancement does not constitute a profit forecast and should not be interpreted to mean that Balfour Beatty's future earnings per share will necessarily exceed or match those of any prior year. Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler, said: "The acquisition of Dean & Dyball is the latest stage in our strategy ofbuilding leading positions in regional UK civil engineering and building marketsfollowing the successful acquisition and integration of Mansell, Birse andCowlin. This transaction establishes a strong civil engineering base in an areawhere we currently have only a limited presence and adds further capability inthe building sector." 19 March 2008 BALFOUR BEATTY ACQUIRES DEAN & DYBALL, A LEADING UK REGIONAL CONTRACTOR, FOR £45 MILLION Further step in established strategy of expanding Balfour Beatty's regional presence in the UK Balfour Beatty, the international engineering, construction, services andinvestment group, announces today that it has acquired Dean & Dyball Limited, aleading UK regional civil engineering and building business, for a cashconsideration of approximately £45 million. Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler, said: "The acquisition of Dean & Dyball is the latest stage in our strategy ofbuilding leading positions in regional UK civil engineering and building marketsfollowing the successful acquisition and integration of Mansell, Birse andCowlin. This transaction establishes a strong civil engineering base in an areawhere we currently have only a limited presence and adds further capability inthe building sector." Rationale and Key Benefits The acquisition is a further key step in Balfour Beatty's strategy to extend itsUK regional civil engineering and building businesses. The operations whichmake up Balfour Beatty's leading presence in these markets deliver amongst theGroup's best and most reliable margins and the markets themselves have positivegrowth momentum. Dean & Dyball provides a strong, established presence in thesoutheast, south and southwest of England and in Wales in civil engineeringmarkets where Balfour Beatty currently has little coverage. It also augmentsBalfour Beatty's existing building market presence in those areas. The acquisition is expected to be earnings enhancing in its first full year*. Dean & Dyball Dean & Dyball is a civil engineering and building business, based in Ringwood,Hampshire. It has a strong presence in civil engineering markets in thesouthern half of the UK, with regional offices in Ringwood, Exeter, Bristol,Maidstone, Coleshill (near Birmingham) and Swansea. In addition, it has abusiness unit that focuses on rail customers, based in Stevenage, Hertfordshire. It also has a small property development business and an equity investment in aPPP Pathfinder coastal protection project for the Environment Agency. Theproperty development business, which has a successful track record, has threelive projects, the largest of which is a combined Magistrates', County and Crownlaw court development in Salisbury, Wiltshire that is forward funded. Dean & Dyball was founded in 1969 and initially focused on the water utilities,marine and coastal sectors. This was extended in the 1970s to includecommercial and industrial building for the private sector and river and highwayworks for the public sector. It has approximately 700 staff and 500 directlyemployed operatives. Performance In the year to 30 September 2007, Dean & Dyball had a turnover of £262 millionand profit before interest and tax of £4.5 million. Net assets at 30 September2007 were £18.4 million and included £8.6 million of net cash and £11.25 millionof freehold and long leasehold properties. The Market UK regional civil engineering and building markets are growing significantly.Dean & Dyball is well placed to continue its growth based on strong long-termrelationships with a range of key customers in both the private and publicsector, including Network Rail, the Environment Agency, Thames Water, RNLI(Royal National Lifeboat Institute) and the Ministry of Defence. * The statement as to earnings per share enhancement does not constitute a profit forecast and should not be interpreted to mean that Balfour Beatty's future earnings per share will necessarily exceed or match those of any prior year. ENDS Enquiries to: Tim Sharp Tel: 020 7216 6884 www.balfourbeatty.com Notes to Editors 1. Balfour Beatty is the UK's leading civil engineering and building construction group. It operates through: - Balfour Beatty Civil Engineering with total annual revenues of £750 million - which delivers engineering solutions from minor works to major infrastructure projects. It offers a wide range of services from construct only works contracts to complex, asset-based, service-driven solutions. - Balfour Beatty Construction with annual revenues of £850 million - which undertakes new build and refurbishment projects throughout all areas of the UK market, largely through established partnership agreements. The company supports both Balfour Beatty Capital and external Special Purpose Vehicles on PPP projects. - Mansell with annual revenues of £850 million - which is a constructor with national capability and regional delivery, with a wide range of long-term relationships in specific market sectors, including affordable housing, education, health, defence, airports, commercial and interiors, culture and heritage. 2. Balfour Beatty strengthened its regional businesses by the acquisition of Mansell for the building business in 2003, Birse for the civil engineering business in 2006 and Cowlin for the building business in 2007, all of which have been successfully integrated into the Balfour Beatty organisation. 3. Balfour Beatty is a UK leader in building services through Haden Young, the mechanical and electrical contractor, and Balfour Kilpatrick, the electrical and mechanical services company. These two businesses have combined annual revenues of £600 million. 4. Balfour Beatty is a leading player in the UK facilities management market through Haden Building Management which has annual revenues of £300 million. 5. Balfour Beatty is a world-class engineering, construction, services and investment business, well-positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer need. Balfour Beatty's financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP and other long-term growth opportunities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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