Parsons Brinckerhoff Sale11 May 2014 08:21
BALFOUR BEATTY is planning to return several hundred million pounds to shareholders from the sale of its American division, Parsons Brinckerhoff.
The embattled construction company, which last week lost chief executive Andrew McNaughton after a shock profit warning, has employed Goldman Sachs to sell the arm.
Balfour Beatty paid $600m for Parsons Brinckerhoff five years ago. It thought the deal would help it to become a one-stop shop for big construction clients, driving work into its other divisions.
Senior sources said, however, that the synergies had been less than expected, and a sale had been contemplated for some months. It is thought Parsons Brinckerhoff could fetch up to $1bn, with keen interest from private equity and trade buyers.
The proceeds will be used in part to top up Balfour Beatty’s pension scheme but the bulk will go to shareholders.
(The Sunday Times)