Balfour Beatty PLC 22 August 2001 BALFOUR BEATTY ACQUIRES LEADING US REGIONAL CIVIL AND SPECIALIST ENGINEERING CONTRACTOR FOR $16.9 MILLION Balfour Beatty plc, the international engineering, construction and services group, announces today that it has acquired National Engineering and Contracting Company (National), a leading US regional civil and specialist engineering contracting company, for a total consideration of $16.9 million. National specialises in the construction of bridges, highways and water treatment facilities and the great majority of its turnover derives from these sources. It also has a fast-growing business in the construction of towers for the telecommunications industry and a long-established, regional structural steel erection business. It is based in Cleveland, Ohio, and operates principally in Ohio and West Virginia. It had 2000 turnover of $105 million and made operating profits of $3.9 million. Mike Welton, Chief Executive of Balfour Beatty, commenting on the acquisition today, said: 'National Engineering and Contracting is a quality company which will add to the overall strength and geographic market coverage of our substantial and successful existing US civil and specialist engineering business. The US transportation infrastructure market, underpinned by TEA 21, offers excellent prospects for future growth.' Balfour Beatty recently announced new contract wins in the US totalling some $200 million, principally in road and rail work on the West Coast. Its overall order book in the US exceeds $1 billion. National is among the premier bridge building companies in the mid-West. Its telecommunications tower business is growing rapidly and is in a sector of the market which is largely unaffected by the current difficulties in the telecoms industry. National was hitherto owned by its management and employees, having had an ESOP or equivalent since 1938. It employs approximately 600 people. The consideration will be satisfied by an initial cash payment of $8.1 million, with a further payment of $8.8 million in 28 days. There is also a formula for an earn-out in the period 2001 to 2003. Enquiries to: Tim Sharp Tel: 020 7216 6884 www.balfourbeattycom Notes to Editors Balfour Beatty in the USA 1. Balfour Beatty had 2000 US sales in civil and specialist engineering of over $340 million, covering road and interchange construction in Texas, marine structures, large bridges and complex highways in the Eastern States, and highways, tunnelling and seismic retrofit in California. 2. Heery is a leading architectural engineering and programme management company with annual turnover of over $150 million and a client list which includes Coca Cola, Home Depot and MBNA. 3. Andover Controls is a market and technology leader in building management and security control systems and has annual sales of over $100 million. Integral Technologies, which was acquired in 2000, is a leader in security surveillance and digital imaging technology. Andover's clients include Merck, AT & T and Johnson & Johnson. 4. In rail, Marta Metroplex is a leading US trackwork contractor. It is currently constructing a 50-mile extension to the DART system in Dallas, Texas. It is also working on three other major contracts amounting to some $150 million in value. These are to construct the BART San Francisco Airport Extension, the Alameda Corridor Rail Project in Los Angeles and the Southern New Jersey Light Rail System. 5. In February 2001, Balfour Beatty acquired the Rail Systems Division of ABC-NACO, the US industrial group, for a total consideration of $21.5 million. The business has been renamed Balfour Beatty Rail Systems Inc, and operates nationally in the US, but with particular focus on California, the North East and the South East. Its largest current project is the $51 million turnkey signalling contract for SEPTA, a Pennsylvanian transit authority.
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