Sep 3 2007
Key Points
- Provides strong, profitable presence in building construction markets in South and Southwest England and in Wales
- Excellent fit in terms of geography, culture and project type
- Strong, well-respected brand with a quality reputation and a large secured order book
- Core activities in long-term partnerships and frameworks with high levels of repeat business
- Experienced management with a strong track record of successful growth
- Mature, established supply chain structure and proven risk management
- Earnings enhancing in 2008 and beyond
Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler said:
“The acquisition of Cowlin Group adds to our leading position in regional UK building markets by establishing a strong base in an area where we currently have only a limited presence. It is well-established in its regional design and build, construction and refurbishment markets and has a strong management team which has made excellent progress in growing the business over recent years.”
Balfour Beatty, the international engineering, construction, services and investment group, announces today that is has acquired Cowlin Group, the leading UK regional building business, for a cash consideration of approximately £52 million from its current management. Cowlin Group has positive net cash balances in excess of £20 million.
Rationale and Key Benefits
The acquisition is in line with Balfour Beatty’s strategy to extend its UK regional building and civil engineering businesses. The operations which make up Balfour Beatty’s leading presence in these markets deliver amongst the Group’s best and most reliable margins, and the markets themselves have positive growth momentum. Cowlin will provide a strong, established presence in the south and southwest of England and in Wales, markets where the Group currently has little coverage.
The acquisition is expected to be earnings enhancing in 2008 and beyond.