 |
|
Balfour Beatty in property play
Construction giant Balfour Beatty plc has snapped up the military Public Private Partnership (PPP) accommodation business from a US real estate investment trust for $350.5 million (£176.3 million) in cash.
The property purchase from GMH Communities Trust (GMH), which is immediately earnings enhancing, secures a reliable, long-term profit and cash flow from a portfolio of PPP concessions in the US and adds an experienced management team to develop Balfour Beatty’s presence in the growing US PPP market.
GMH is responsible for the development, renovation, financing, operation and management of military accommodation projects for the US forces. With rights to 15 concessions at 42 bases, the business will operate as Balfour Beatty Construction, acquired by Balfour Beatty in March 2007.
Balfour Beatty chief executive Ian Tyler says the acquisition is central to the business’ strategy of replicating the firm’s UK model in the US. “It adds a major PPP business to our US group in one of our key target market sectors,” he explains, describing GMH as a springboard into other emerging PPP and support service sectors in the US.
Other M&A Deals
- MSIF supports scaffolding buy-out May 15 2008
- MDM’s £4.4m AIM move May 13 2008
- Capula’s £6 million re-financing May 12 2008
- Brammer stokes Italian deal May 15 2008
Special Offers
- 2007 AIM Guide: Jul 17 2007
- Growth Company Investor Magazine: Jul 17 2007
- Cash Shells 2007 - Research report Jul 17 2007
- Venture Capital Trusts Jul 04 2007
M&A News
- European VCs faring better than US
May 15 2008 - Italian buy does the job for Brammer May 15 2008
- VCT investors
losing out May 14 2008 - Mighty Mouse Digital expansion May 14 2008
- Pension buy-outs set to quadruple
May 13 2008
M & A Events
- Investor AllStars Venture Capital Awards 2008 16th September
- Business XL Company of the Year Awards 2008 3rd July
- M&A How to float on AIM - London 25th June
- M&A How to Float on AIM - Birmingham 12th June