Balfour Beatty acquires military PPP

Source: Construction Digital

Date :02/05/2008 10:25:53

Balfour Beatty, the international engineering, construction, investment and services group, has completed its acquisition of the military PPP business from GMH for $350.5 million.

The deal secures a reliable, long-term profit and cash flow from a portfolio of PPP concessions in the US, adding an experienced and successful management team to develop Balfour Beatty’s presence in the growing PPP market.

US strategy

Balfour Beatty Chief Executive, Ian Tyler, said, “The acquisition of GMH’s military accommodation business is central to implementing our US strategy of building a high-quality, domestic US business similar to our very successful UK model. It adds a major, high-quality PPP business to our US group in one of our key target market sectors.”

GMH has secured rights to 15 concessions at 42 bases, and is responsible for the development, renovation, financing, operation and management of military accommodation projects for the US Department of the Army, US Department of the Navy, and US Department of the Air Force.

The deal with GMH, funded by Balfour Beatty’s existing cash resources, should enhance the company’s earnings and generate significant value for its shareholders.

May 2, 2008