Balfour Beatty, the international engineering, construction, services and investment group, announces today that it has acquired Dean & Dyball Limited, a leading UK regional civil engineering and building business, for a cash consideration of approximately £45 million.
Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler, said:
"e;The acquisition of Dean & Dyball is the latest stage in our strategy of building leading positions in regional UK civil engineering and building markets following the successful acquisition and integration of Mansell, Birse and Cowlin. This transaction establishes a strong civil engineering base in an area where we currently have only a limited presence and adds further capability in the building sector."e;
Rationale and Key Benefits
The acquisition is a further key step in Balfour Beatty"e;s strategy to extend its UK regional civil engineering and building businesses. The operations which make up Balfour Beatty"e;s leading presence in these markets deliver amongst the Group"e;s best and most reliable margins and the markets themselves have positive growth momentum. Dean & Dyball provides a strong, established presence in the southeast, south and southwest of England and in Wales in civil engineering markets where Balfour Beatty currently has little coverage. It also augments Balfour Beatty"e;s existing building market presence in those areas.
The acquisition is expected to be earnings enhancing in its first full year1.
Dean & Dyball
Dean & Dyball is a civil engineering and building business, based in Ringwood, Hampshire. It has a strong presence in civil engineering markets in the southern half of the UK, with regional offices in Ringwood, Exeter, Bristol, Maidstone, Coleshill (near Birmingham) and Swansea. In addition, it has a business unit that focuses on rail customers, based in Stevenage, Hertfordshire.
It also has a small property development business and an equity investment in a PPP Pathfinder coastal protection project for the Environment Agency. The property development business, which has a successful track record, has three live projects, the largest of which is a combined Magistrates"e;, County and Crown law court development in Salisbury, Wiltshire that is forward funded.
Dean & Dyball was founded in 1969 and initially focused on the water utilities, marine and coastal sectors. This was extended in the 1970s to include commercial and industrial building for the private sector and river and highway works for the public sector. It has approximately 700 staff and 500 directly employed operatives.
Performance
In the year to 30 September 2007, Dean & Dyball had a turnover of £262 million and profit before interest and tax of £4.5 million. Net assets at 30 September 2007 were £18.4 million and included £8.6 million of net cash and £11.25 million of freehold and long leasehold properties.
The Market
UK regional civil engineering and building markets are growing significantly. Dean & Dyball is well placed to continue its growth based on strong long-term relationships with a range of key customers in both the private and public sector, including Network Rail, the Environment Agency, Thames Water, RNLI (Royal National Lifeboat Institute) and the Ministry of Defence.
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