Acquisition

Balfour Beatty PLC
19 March 2008

19 March 2008


BALFOUR BEATTY ACQUIRES DEAN & DYBALL, A LEADING UK REGIONAL CONTRACTOR, FOR £45
                                    MILLION


  Further step in established strategy of expanding Balfour Beatty's regional
                               presence in the UK


                              K E Y   P O I N T S


-  Provides strong, profitable presence in civil engineering markets in the 
   southern half of England and in Wales


-  Excellent fit in terms of geography, culture and project type


-  Augments regional building activities of Mansell and Cowlin and complements 
   Birse Rail


-  Strong, well-respected brand with a quality reputation


-  Core activities have a high level of repeat business, a substantial part of 
   which is in long-term partnerships and frameworks


-  Experienced management with a track record of successful growth


-  Earnings enhancing in its first full year*


*  The statement as to earnings per share enhancement does not constitute a
   profit forecast and should not be interpreted to mean that Balfour Beatty's
   future earnings per share will necessarily exceed or match those of any prior
   year.


Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler, said:


'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.'


19 March 2008



BALFOUR BEATTY ACQUIRES DEAN & DYBALL, A LEADING UK REGIONAL CONTRACTOR, FOR £45
                                    MILLION


  Further step in established strategy of expanding Balfour Beatty's regional
                               presence in the UK


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:


'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.'


Rationale and Key Benefits


The acquisition is a further key step in Balfour Beatty's strategy to extend its
UK regional civil engineering and building 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.  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's existing building market presence in those areas.


The acquisition is expected to be earnings enhancing in its first full year*.


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', 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.



*   The statement as to earnings per share enhancement does not constitute a
    profit forecast and should not be interpreted to mean that Balfour Beatty's
    future earnings per share will necessarily exceed or match those of any 
    prior year.

                                      ENDS


Enquiries to:

Tim Sharp

Tel: [phone]

www.balfourbeatty.com



Notes to Editors


1.  Balfour Beatty is the UK's leading civil engineering and building 
    construction group.  It operates through:


-   Balfour Beatty Civil Engineering with total annual revenues of £750 million 
    - which delivers engineering solutions from minor works to major 
    infrastructure projects.  It offers a wide range of services from construct 
    only works contracts to complex, asset-based, service-driven solutions.



-   Balfour Beatty Construction with annual revenues of £850 million - which 
    undertakes new build and refurbishment projects throughout all areas of
    the UK market, largely through established partnership agreements.  The 
    company supports both Balfour Beatty Capital and external Special Purpose 
    Vehicles on PPP projects.



-   Mansell with annual revenues of £850 million - which is a constructor with 
    national capability and regional delivery, with a wide range of long-term 
    relationships in specific market sectors, including affordable housing, 
    education, health, defence, airports, commercial and interiors, culture and 
    heritage.


2. Balfour Beatty strengthened its regional businesses by the acquisition of
   Mansell for the building business in 2003, Birse for the civil engineering
   business in 2006 and Cowlin for the building business in 2007, all of which 
   have been successfully integrated into the Balfour Beatty organisation.


3. Balfour Beatty is a UK leader in building services through Haden Young, the
   mechanical and electrical contractor, and Balfour Kilpatrick, the electrical 
   and mechanical services company.  These two businesses have combined annual 
   revenues of £600 million.


4. Balfour Beatty is a leading player in the UK facilities management market 
   through Haden Building Management which has annual revenues of £300 million.


5. Balfour Beatty is a world-class engineering, construction, services and 
   investment business, well-positioned in infrastructure markets which offer
   significant long-term growth.  We work in partnership with sophisticated
   customers who value the highest levels of quality, safety and technical
   expertise.  Our skills are applied in appropriate combinations to meet
   individual customer need.  Balfour Beatty's financial position, with 
   significant net cash and with strong operating cash flows, offers continuing 
   flexibility to add additional capacity and expertise to the business mix and 
   to make appropriate investments in PPP and other long-term growth 
   opportunities.


                      This information is provided by RNS
            The company news service from the London Stock Exchange