30th Aug 2007 07:01
Balfour Beatty PLC30 August 2007 30 August 2007 BALFOUR BEATTY ACQUIRES COWLIN GROUP, A LEADING UK REGIONAL CONTRACTOR, FOR £52 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 building construction markets in South and Southwest England and in Wales- Excellent fit in terms of geography, culture and project type- Strong, well-respected brand with a quality reputation and a large secured order book- Core activities in long-term partnerships and frameworks with high levels of repeat business- Experienced management with a strong track record of successful growth- Mature, established supply chain structure and proven risk management- Earnings enhancing in 2008 and beyond* * The statement as to earnings per share enhancement does not constitute aprofit forecast and should not be interpreted to mean that Balfour Beatty'sfuture earnings per share will necessarily exceed or match those of any prioryear. Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler said: "The acquisition of Cowlin Group adds to our leading position in regional UKbuilding markets by establishing a strong base in an area where we currentlyhave only a limited presence. It is well-established in its regional design andbuild, construction and refurbishment markets and has a strong management teamwhich has made excellent progress in growing the business over recent years." BALFOUR BEATTY ACQUIRES COWLIN GROUP, A LEADING UK REGIONAL CONTRACTOR, FOR £52 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 is has acquired Cowlin Group, the leadingUK regional building business, for a cash consideration of approximately£52 million from its current management. Cowlin Group has positive net cashbalances in excess of £20 million. Rationale and Key Benefits-------------------------- The acquisition is in line with Balfour Beatty's strategy to extend its UKregional building and civil engineering businesses. The operations which make upBalfour Beatty's leading presence in these markets deliver amongst the Group'sbest and most reliable margins, and the markets themselves have positive growthmomentum. Cowlin will provide a strong, established presence in the south andsouthwest of England and in Wales, markets where the Group currently has littlecoverage. The acquisition is expected to be earnings enhancing in 2008 and beyond*. Cowlin Construction------------------- Cowlin Group, which trades as Cowlin Construction, is a building andrefurbishment contractor based in Bristol, serving South and Southwest Englandand Wales. It operates through four main regional offices in Bristol, Cardiff,Plymouth and Yeovil and has wide sector coverage with particular expertise ineducation, healthcare, leisure, residential, commercial and industrial property.Much of its business is done through long-term frameworks and partnershiparrangements. The business was established in 1834. It has approximately 300 staff and 150directly employed operatives. In healthcare, it constructs general hospitals,special care units and research and teaching facilities. In education, it has anextensive portfolio of work for local education authorities and universities. Incommercial and industrial property, it is active in office developments,business parks, industrial units and headquarters buildings. It has over 50years' experience in the luxury residential market. It also has a specialist timber frame division based in Wales. Performance----------- In the year ended 30 September 2006, Cowlin had revenues of £186 million andprofit before tax of £5.3 million. Net assets at 30 September 2006 were £5.8million, while its confirmed order book exceeds £200 million with a further £130million of prospective work under final negotiation. The Market---------- UK construction and building markets are growing significantly, underpinned bygovernment spending on infrastructure and by buoyant private sector investment.With its strong relationships with both public and private sector customers,Cowlin is well positioned to take advantage of this growth, as are BalfourBeatty's other regional construction and infrastructure businesses. * The statement as to earnings per share enhancement does not constitute aprofit forecast and should not be interpreted to mean that Balfour Beatty'sfuture earnings per share will necessarily exceed or match those of any prioryear. ENDS Enquiries to: Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors---------------- 1. Balfour Beatty is the UK's leading building construction company. It currently operates through: - Balfour Beatty Construction - the £750 million per annum revenue major projects building business active in education, healthcare, defence and industrial and commercial property markets. Amongst its current major projects are the £530 million Birmingham Hospital, the £180 million Stobhill and Victoria Hospitals in Glasgow and major PPP schools schemes in Birmingham, Stoke, Bassetlaw, Rotherham and North Lanarkshire. - Mansell - the £750 million per annum revenue regional building company with a wide range of long-term framework partners and specialist expertise in new build and refurbishment. It is a leader in the fast-growing affordable housing market. 2. Balfour Beatty strengthened its regional businesses by the acquisition of Mansell for the building business in 2003 and Birse for the civil engineering business in 2006, both of which have been successfully integrated into the Balfour Beatty organisation. 3. Balfour Beatty is the UK leader in building services through Haden Young, the mechanical and electrical contractor, and Balfour Kilpatrick, the electrical services company. These two businesses have combined annual revenues of approximately £500 million. 4. Balfour Beatty is a leading player in the UK facilities management market through Haden Building Management which has annual revenues of approximately £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. Its 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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