Acquisition

RNS Number : 4606C

Balfour Beatty PLC

13 November 2009

 



13 November 2009

BALFOUR BEATTY TO ACQUIRE HOUSTON-BASED CONTRACTOR, 

SPAWMAXWELL, FOR UP TO $25 MILLION

Balfour Beatty, the international infrastructure group operating in construction services, professional services, support services and infrastructure investments, announces today that it is to acquire SpawMaxwell Company, the largest interior construction contractor in Texas and the sixth largest general contractor in Houston. The business is being acquired from its management for a total cash consideration of up to $25 million.

The acquisition enhances the position of Balfour Beatty Construction US as a single source of construction capabilities in the Texas building markets and is line with its strategy of expanding in selected geographic markets.

SpawMaxwell has offices in Houston, Austin and Dallas and has delivered more than 40 million square feet of premium commercial and healthcare interior construction projects. It also has a growing "core and shell" construction portfolio in Texas.  

SpawMaxwell's customers include The City of Houston, Memorial Hermann Healthcare System and Gulf States Toyota.  

The management of SpawMaxwell will remain with the business in their current leadership roles.

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

"The acquisition of SpawMaxwell provides us with a substantial presence in key Texas markets outside Balfour Beatty Construction's base in Dallas and enables us to provide an expanded range of services for customers.  We look forward to SpawMaxwell joining the Balfour Beatty Group and driving our growth across the largest building markets in Texas."

In February 2009, Balfour Beatty Construction acquired RT Dooley Construction, a family-owned construction firm based in Charlotte, North Carolina.  RT Dooley specialises in corporate headquarters, corporate interiors/fit-out and "mission critical" work such as data centres and call centres.

-ENDS-

Analyst/media enquiries:    

Duncan Murray

Tel: [phone]

www.balfourbeatty.com

Notes to Editors:

1.

Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group operating in construction services, professional services, support services and infrastructure investments. We work in partnership with our customers principally in the UK, the US, South-East Asia and the Middle East, who value the highest levels of quality, safety and technical expertise.   Our key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail). We deliver services essential to the development, creation and care of these infrastructure assets including investment, project design, financing and management, engineering and construction, and facilities management services.   Balfour Beatty employs more than 53,000 people around the world and its strong financial position offers continuing flexibility to make appropriate investments in long-term growth opportunities.

2.

Balfour Beatty's US business comprises leading market positions in military privatisation housing projects; professional and technical services to the transportation, civil infrastructure and building markets; building construction in Florida, Texas, Washington DC and North Carolina; and civil engineering in the California and Texas. It is also a nationwide rail contractor, serving the mass transit, Class 1 and private service markets.

3.	Last month, Balfour Beatty completed the acquisition of Parsons Brinckerhoff (PB), one of the world's leading professional services companies. Parsons Brinckerhoff is among the leading providers of transportation-related professional services in the US, and provides a key channel to the civil infrastructure market, including roads, rail, aviation, ports, power and energy. The vast majority of Parsons Brinckerhoff's work in the US civil infrastructure market is secured on the basis of reputation, qualifications and track record.
4.	Based in Dallas, Balfour Beatty Construction US employs 1,600 professionals in 10 offices nationwide. The company had 2008 revenues of over $2.4 billion. While the company operates on a national basis, construction services are offered through its full-service division headquarters in Charlotte, Fort Lauderdale, Dallas, and Washington, D.C. SpawMaxwell will operate as a fifth full-service division headquarters.
5.	SpawMaxwell Company was founded in 1998 with the consolidation of David Spaw Company and Maxwell Company Construction. SpawMaxwell is the largest provider of interior construction services in Texas, and the sixth largest general contractor in Houston. It has delivered more than 40 million square feet of premium commercial and healthcare construction from offices in Austin, Dallas and Houston. SpawMaxwell has a growing core and shell construction portfolio from a history of collaboration with prominent builders. SpawMaxwell also provides at-risk construction management and design-build services. SpawMaxwell was selected by Texas Construction as the Contractor of the Year in 2009, and has been a recipient of the Houston Best Places to Work award nine consecutive years since the award's inception.

 

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