10th Aug 2005 07:01
Balfour Beatty PLC10 August 2005 10 August 2005 BALFOUR BEATTY ACQUIRES PENNINE GROUP, THE UK GROUND ENGINEERING SPECIALISTS, AND AGREES TO ACQUIRE SBB, THE GERMAN SIGNALLING COMPANY ========================================================= Acquisitions strengthen Balfour Beatty's position in ground engineering and rail signalling ----------------------------------------- Balfour Beatty, the international engineering, construction and services group,announces today that it has acquired Pennine Group, the UK ground engineeringbusiness, for approximately £8 million and agreed to acquire SBB, the specialistGerman signalling contractor, for €14 million. Commenting on the acquisitions, Ian Tyler, Balfour Beatty Chief Executive, saidtoday: "Balfour Beatty is, through Stent, already a leader in the piling sector and theacquisition of Pennine gives us a strong, complementary presence in groundengineering. We can now offer the full range of foundation solutions in the UK.The acquisition of SBB will offer us an important opportunity to broaden oursignalling capability and to develop further our excellent existing relationshipwith Deutsche Bahn in Germany." Pennine operates throughout the UK and specialises in the treatment andpreparation of poor ground by the use of specialist vibration techniques - usingproprietary equipment which it also manufactures. It also operates selectivelyoverseas, including in Spain. SBB is a leader in the German market for electrical signalling installations. Itwill become a part of Balfour Beatty Rail Power Systems, Balfour Beatty'sMunich-based subsidiary which specialises in rail electrification and powersystems for international rail markets. Pennine------- In the UK, growth prospects for ground improvement are attractive, driven by thetrend to develop brownfield sites and increasing requirements for environmentalremediation. Pennine has a good reputation for delivering cost-effective,value-added, reliable solutions to a wide range of construction customers. Thereis also significant potential to expand further Pennine's operations overseas,including in the Middle East where ground conditions favour the technology usedby Pennine. In the financial year ending March 2005, Pennine had sales of £16 million andoperating profit of approximately £1.5 million. The Group employs 130 staff and is based at Bacup in Lancashire. SBB--- SBB currently operates, predominantly, in the former East Germany, but hasrecently extended its operations to the west. The majority of its work is in therenewal and installation of signalling systems under existing frameworkcontracts with Deutsche Bahn. SBB is a profitable company with a skilledsignalling workforce and fits well with our recent acquisition of Bombardier'sUK-based Solid State Interlocking business. In 2004, SSB had sales of approximately €10 million. The company has 85employees and is based in Stassfurt near Leipzig. The acquisition is subject to clearance from the German Cartel Office, which isexpected in late August. ENDS Enquiries to: Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors---------------- 1. Balfour Beatty is a world-class engineering, construction and services group, well positioned in infrastructure markets which offer significant growth potential. Its partnerships with public and private customers generate secure, sustainable income. 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. 2. Stent Foundations designs and constructs foundations for all types of building, structures and civil engineering works. Amongst its recent major foundation contracts are: - the new Wembley National Stadium - the City of Manchester Stadium - Channel Tunnel Rail Link Contracts 440 and 420 - M25 widening at Heathrow Airport - the new Arsenal Stadium at Ashburton Grove - University College London Hospital. 3. In October 2004, Balfour Beatty acquired Bombardier Transportation's UK Solid State Interlocking (SSI) signalling resources. This acquisition, in conjunction with Balfour Beatty's existing signalling expertise, created a broad range of signalling related services to service the needs of Network Rail and other customers. 4. Balfour Beatty Rail Power Systems is a major supplier to rail network owners and operators in Germany, Italy, Sweden, Austria, Spain, Portugal, China and Malaysia. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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