18th Jan 2006 15:49
Balfour Beatty PLC18 January 2006 18 January 2006 MOWLEM PLC AND THE ACQUISITION OF CHARTER AND EDGAR ALLEN ============================================== Balfour Beatty, the international engineering, construction and services group,announces today that, further to its announcement on 12 December 2005, it willnot be making an offer for Mowlem Plc (see note below). Balfour Beatty also announces that it has reached a binding agreement, subjectto due diligence, with Carillion plc that, subject to the latter's acquisitionof Mowlem Plc, Balfour Beatty will acquire from Carillion two of Mowlem'sbusinesses, namely Charter, the US construction management company, and EdgarAllen, the UK rail track products manufacturer. It is anticipated that the businesses will be purchased for a combinedconsideration of approximately £20 million. Charter, based in Texas, provides construction management, design and build andconstruction services to public and private customers. It is a leading builderof educational facilities in the state. In 2004, it had sales of approximately£95 million and operating profits of £2 million. Its acquisition will complementHeery Inc, Balfour Beatty's US project and programme management specialist,which is a nationwide leader in the primary and secondary education market. Edgar Allen manufactures switches, crossings and other rail track products. In2004, it had sales of £25 million and made profits of £2 million. Theacquisition of Edgar Allen will strengthen Balfour Beatty's leading position asa specialist in the design, manufacture and supply of track products throughBalfour Beatty Rail Track Systems. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com Note---- Balfour Beatty acknowledges that, pursuant to this announcement, Balfour Beattyand any person acting in concert with it will, except with the consent of thePanel, be bound by the restrictions contained in Rule 2.8 of the City Code forsix months. However, Balfour Beatty reserves the right to make an offer forMowlem if Carillion's proposed acquisition of Mowlem is not completed and thenonly with the agreement or recommendation of the board of Mowlem. Notwithstanding the above, the Panel has consented to Balfour Beatty enteringinto the agreements with Carillion described above. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Balfour BeattyCarillion Plc