BALFOUR Beatty has announced it has reached an agreement with a subsidiary of CBRE Group to sell Heery International, its US professional services business.
The transaction, which is subject to certain contractual consents, is expected to be completed before the end of year for a total cash consideration of $57 million (£42 million), subject to working capital and debt adjustments. Balfour Beatty said the deal will release funds to be used “in the normal course of business”.
Balfour Beatty acquired a 50% interest in Heery in 1986, which it increased to 100% in 1990. The company explained that in certain US markets, acting as programme manager on a contract precludes a company from bidding as general contractor due to perceived conflicts of interest. The sale would remove this constraint from the group’s US Buildings operation.
Leo Quinn, Balfour Beatty group chief executive said, “We continue to focus and strengthen the group in our chosen markets. This transaction is another example of maximising shareholder value at the appropriate time and value, while improving our strategic position. We look forward to continuing our strong working relationship with CBRE.”