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| Balfour Beatty acquires Centex Construction  UK construction giant Balfour Beatty announces that it has agreed to acquire Centex Construction (CC), a leading US building company, from Centex Corporation for a cash consideration of $362 million. At the completion of the acquisition, it is anticipated that CC will have substantial net cash in its balance sheet. CC's average cash balances in excess of equity for the nine months ended 31 December 2006 were approximately $200 million. In addition to the cash consideration, Balfour Beatty will pay Centex Corporation $4 million per annum for 15 years to secure incremental tax benefits.Balfour Beatty is already a US leader in selected design, project and programme management markets through Heery International and has established a presence in the growing US private finance market through Balfour Beatty Capital. The acquisition of CC offers Balfour Beatty additional potential to grow in its target building and investment markets, as well as a strong, well-positioned and well-managed business. Centex Corporation is selling CC in order to concentrate its resources on the US housing market, in which it is a leading participant. The transaction is conditional upon certain US regulatory clearances. Centex Construction (CC) is a profitable, top tier US building company with leading positions in the Florida, Texas, Washington DC and North Carolina markets. CC is also a leading player in the nationwide military housing market. It has approximately 1,500 employees. The CC management team to be acquired with the business has a proven track record of profitable growth. The acquired business will change its name to Balfour Beatty following the acquisition. Once the acquisition is completed, Balfour Beatty's annual revenues in the US will amount to approximately $3.5 billion, 80% of which will be in the building sector through CC and Heery. US sales are likely to represent approximately 23% of proforma Group revenues. write your comments about the article :: © 2007 Construction News :: home page |