LONDON, UK, Sept. 17, 2009 -- International engineering, construction, investment and services group Balfour Beatty
reported it will acquire Parsons Brinckerhoff
, one of the world’s leading professional services companies, for $626 million and will finance the deal with a stock rights issue. The stock issue will be fully underwritten on a 3-for-7 basis at 180 pence per ordinary share to raise about £353 million -- US$626 million.
Commented Balfour Beatty chief executive Ian Tyler: "The acquisition of Parsons Brinckerhoff represents the realisation of a number of key strategic objectives for Balfour Beatty. In particular, we believe it makes us one of the world's major players in professional services, substantially strengthens our U.S. presence and puts Balfour Beatty in an excellent position to take advantage of increased infrastructure spending. It is a key step in becoming a global integrated leader in infrastructure services."
On news of the deal, shares of the company jumped 8.1% in London. Balfour Beatty expects the acquisition and stock issue, taken together and before exceptional items, to enhance earnings per share in the year ending Dec. 31, 2011
Parsons Brinckerhoff (www.pbworld.com
) ranked 11th in terms of global design revenues amongst US-based firms by ENR in 2009. It has a strong focus on civil infrastructure, particularly transportation in the United States as well as the power market in the UK. It also operates selectively in the building market in South and East Asia, where it specialises in electrical and mechanical design, as well as in the water market in both the U.S. and Australia. The firm is known for its programme management of large, complex projects and has been involved in some of the largest and most important infrastructure projects in the world. Operating via a network of over 100 offices, about 12,650 employees, its employee-owned, with about 4,750 stockholders. In the year ended 31 October 2008, its revenue was US$2.34 billion with adjusted profit from operations before exceptional and employee stock items of US$107 million.
Balfour Beatty (www.balfourbeatty.com) 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. Its skills are applied in appropriate combinations to meet individual customer needs.