Balfour Beatty sells off facilities management arm for £190m
International infrastructure group Balfour Beatty has announced it will be selling its UK facilities management business to French energy group GDF Suez for £190m in cash.
The cash consideration will be reduced to account for liabilities passed on with the business.
Completion is expected in the fourth quarter of this year with a net cash inflow of over £150m. Balfour Beatty said it would use the money to fund investments consitent with its strategy.
The facilities management business provides outsourced integrated services and facilities management solutions.It generated £482m of revenue in 2012 with an operating profit of £21m, and has over 9,000 employees.
Commenting on the sale, chief executive Andrew McNaughton said:
The sale of the UK FM business represents an important step in our evolution as we intensify our focus on infrastructure. In addition to finding a good new home for the business, its customers and employees, this transaction has achieved good value and will enable us to allocate more resource to target growth sectors and markets in the future.