7th Mar 2007 07:02
Balfour Beatty PLC07 March 2007 7 March 2007 CENTEX CONSTRUCTION AWARDED $500 MILLION MILITARY HOUSING CONTRACT FOR US DEPARTMENT OF THE NAVY ======================================================= Balfour Beatty, the international engineering, construction, services andinvestment group, announces today that Centex Construction, the leading USbuilder which it agreed to acquire on 1 February 2007, has been awarded a $525million contract for the US Navy South-East privatised housing project. The contract, won with its long-term partners, GMH, a leading US concessioncompany in the field of privatised military and student housing projects, is foraccommodation at 11 Navy bases in five states and involves some 2,100 individualhousing units, community centres and additional amenity features. Commenting today on the contract award, Balfour Beatty Chief Executive,Ian Tyler, said: "This latest addition to Centex's extensive military housing order book furtherconsolidates their leading position in this market and demonstrates theconfidence that the US market has in Centex under Balfour Beatty's ownership. "Centex Construction is a high-quality building company which will give uscritical mass in the US in a core Balfour Beatty business and brings substantialnew business development opportunities." This is one of the largest military housing schemes let to date and is Centex'seleventh such scheme. Construction work will commence in November 2007 and isdue for completion by December 2012. Work will be undertaken at naval bases inSouth Carolina, Georgia, Florida, Massachusetts and Texas. The award takes Centex's military housing order book to over $1.2 billion. Centex Construction (CC) is a profitable, top tier US building company withleading positions in the Florida, Texas, Washington DC and North Carolinamarkets. CC is also a leading player in the nationwide military housing market.It has approximately 1,500 employees. The CC management team to be acquired withthe business has a proven track record of profitable growth. Following thecompletion of the acquisition, which is expected by the end of March, thebusiness will become Balfour Beatty Construction Inc. Balfour Beatty is already a US leader in selected design, project and programmemanagement markets through Heery International and has established a presence inthe Group's US private finance market through Balfour Beatty Capital. Theacquisition, which is expected to be completed by the end of March, offersBalfour Beatty additional potential to grow as well as a strong, wellpositioned, well managed business. ENDS Enquiries to: Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors:---------------- 1. Once the acquisition of Centex Construction is completed, Balfour Beatty's annual revenues in the US will amount to approximately $3.5 billion, 80% of which will be in the building sector. US sales will represent approximately 23% of proforma Group revenues. 2. CC's business is in the construction management and delivery of institutional and commercial buildings, particularly in the education, healthcare, correctional, government, transportation, leisure and office sectors. Amongst its major customers are Federal Government, Disney Corporation, Boston Properties, Marriott, Bank of America and a range of education authorities and healthcare organisations. 3. 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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