Balfour Beatty sells Consulting Business for 1.35 Billion

Balfour Beatty sells Consulting Business for 1.35 Billion

Balfour Beatty sells Consulting Business for 1.35 Billion

Balfout Beatty, the British construction and services company, agreed on Wednesday to sell its Parsons Brinckerhoff consulting business to WSP Global for $1.35 billion.

The sale of Parsons Brinckerhoff was necessary in merger talks between Balfour Beatty and its rival Carillion, this year.

“We are pleased to be joining forces with a firm of Parsons Brinckerhoff’s longstanding reputation and know-how as we expect this transaction to create an industry leader, with the ability to deliver more expertise and services to our client base across the world,” Pierre Shoiry, president and chief executive of WSP, said in a statement.

Parsons Brinckerhoff, based in New York, offers consulting and other professional services to the community developmen, transportation, mining and energy sectors. It has about 170 offices worldwide and employs nearly 13,500 people.

Balfour Beatty use the proceeds from the sale to provide more financial flexibility and reduce a deficit in its pension fund. The company also plans to return about £200 million to shareholders.

The Balfour Beatty adviors are Goldman Sachs and Bank of America Merrill Lynch.

The transaction is subject to regulatory approval. Complete this transaction is expected in the fourth quarter.

 Mr. Stakebay says:

This deal helps to improve WSP Global’s position in the U.K. and provide a stronger collocation of business in growth regions such as Asia and Australia. The transaction also will epxand its capabilities in its core buildings and infrastructure segment, as well as develop the energy segment and further increase its project and program management services offerings.

 

BALFOUR BEATTY WSP GLOBAL
Revenue £ 10.118 billion (2013) $ 2.016 Billion (2013)
Operating income £ -23 million (2013)  $ 1.915 Billion (2013)
Profit £ – 35 million (2013) $ 70.2 Million (2013)
Total assets £ 5.712 billion (2013) $ 1.860 Billion (2013)
Total Equity £ 1.035 billion (2013) $ 973.6 Million (2013)
Employees 49785 (2013) 15000 (2013)

 

 

Executive Chairman of Balfour Beatty……Steve Marshall…….(2005-present)……..£ 265 750 (2013)

President and CEO of WSP Group…………Pierre Shoiry……..(1995-present)….C$ 1 786 759 (2013)

 

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