Acquisition of Centex Construction a Major Step in Balfour Beatty's U.S. Strategy
Balfour Beatty's U.S. revenues to top $3.5 billion in 2007/2008
DALLAS, April 5 -- Balfour Beatty plc, UK's largest construction company has completed the acquisition of Centex Construction, a leading U.S. construction management company, for a cash consideration of $367 million.
The acquisition from Centex Corporation, a leading U.S. homebuilder, is a key milestone in the British construction, services, and investment group's plans to become a major player in the U.S. building market. The acquisition was first announced on February 1, 2007 and was completed on March 31, 2007. The addition of Centex Construction to Balfour Beatty's portfolio gives the company now total annual U.S. revenues of approximately $3.5 billion.
Centex Construction is a top tier building construction company. It has grown strongly in recent years through its regional businesses in four of the U.S.'s largest and fastest growing markets -- Texas, Florida, Washington, D.C. and North Carolina. The company is also a major player in the military housing market. Centex Construction will have total revenues of over $2.2 billion this year, with backlog at record levels and profits growing. Effective immediately, Centex Construction will operate under the name Balfour Beatty Construction.
Andy Rose, Balfour Beatty's Group Managing Director for the U.S., commenting on the transaction, said:
"Establishing a major presence in the U.S. building market, with strong capabilities in program management, project delivery, and capital investment, is a crucial element in Balfour Beatty's long-term growth strategy. Centex Construction is a high-quality construction services company which gives us a profitable critical mass in the U.S. in a business core to Balfour Beatty."
Robert C. Van Cleave, Chairman and CEO of Centex Construction (now Balfour Beatty Construction), said:
"We are extremely excited about this change in ownership. Balfour Beatty has a nearly 100-year history focused on commercial and institutional building construction and through our alignment to their focus and strategy, I am convinced that we will be better positioned as a national company to pursue our growth goals."
Balfour Beatty is already a leader in the U.S. marketplace in selected design, project, and program management markets through Heery International and in the growing U.S. private finance market through Balfour Beatty Capital. Other Balfour Beatty businesses in the U.S. include its civil engineering business, Balfour Beatty Infrastructure Inc., and Balfour Beatty Rail, Inc. This newest acquisition offers the company additional potential to grow in its target building and investment markets, as well as gives it access to a strong, well-positioned, and well-managed business.
Balfour Beatty operates on a very decentralized basis and, new name apart, little change is expected, with its new business encouraged to continue to pursue its existing, highly successful growth strategy.
Andy Rose continued:
"Balfour Beatty Construction serves a total addressable U.S. market of over $400 billion. Left to its own devices, I am very confident it will continue to grow. Backed by Balfour Beatty's resources and working, where appropriate, in conjunction with our other U.S. businesses, I am quite sure that we will be able to help Robert and his team accelerate their rate of growth even further."
About Balfour Beatty
Balfour Beatty is a world-class engineering, construction, services, and investment business, well-positioned in infrastructure markets which offer significant long-term growth. The company works in partnership with sophisticated customers who value the highest levels of quality, safety, and technical expertise. In 2006, Balfour Beatty, which trades publicly on the London Stock Exchange, was voted the UK's sixth most admired public company in all sector categories, made pre-tax profits of over $300 million, and had revenues of $11.5 billion. In addition to its leadership position in the U.K. building market, it is also the U.K.'s leading player in civil engineering, rail engineering and privately financed infrastructure projects, is a world leader in rail electrification, and is a major player in construction markets in Dubai and Hong Kong.
About Balfour Beatty Construction
Balfour Beatty Construction, formerly Centex Construction, has been a leader in the U.S. commercial construction industry for more than 70 years. It provides general contracting, at-risk construction management, design-build and turnkey services. Previously the commercial construction division of Dallas-based Centex Corporation, the company was acquired by Balfour Beatty in March 2007. The company employs 1,400+ professionals and is a top 10 U.S. builder with a regional headquarters in four of the largest and fastest growing building markets across the country. With regional headquarters offices in Fort Lauderdale, Charlotte, Dallas, and Washington, D.C., the company remains focused on building strong business partnerships through local relationships and quality service. In addition to its headquarters locations, the company maintains 11 additional offices across the U.S., dedicated to delivering on its current backlog of over $5.6 billion.
For additional information, contact:
Tim Sharp,
Director, Corporate Communications,
Balfour Beatty, plc,
London, England
Tel: +44 (0)20 7216 6884
http://www.balfourbeatty.com/
Connie Oliver,
VP, Corporate Communications,
Balfour Beatty Construction,
Dallas, Texas,
Tel: (214) 451-1066
http://www.balfourbeattyus.com/
Source: Balfour Beatty Construction
