Balfour Beatty closes sale of Parsons Brinckerhoff.
3 November 2014 - British infrastructure group Balfour Beatty Plc (LON:BBY) announced it had finalised the sale of US infrastructure consultancy Parsons Brinckerhoff Ltd to Canadian professional services provider WSP Global Inc (TSE:WSP).
The total consideration is USD1.24bn (EUR993.3m), representing a multiple of 11 times the target's underlying EBITDA for 2013. In September, the buyer announced it planned to cover the purchase price with the proceeds from a public offering, a private placement and a new credit facility.
Balfour Beatty said in its current statement that some of the sales proceeds would be deduced for transaction and separation-related costs and some would be used to partially cover the company's pension deficit and returned to shareholders in the form of a share buyback programme. A portion would go towards improving the balance sheet and ensuring better flexibility in terms of finance, the company stated.
With the sale of Parsons Brinckerhoff, Balfour Beatty will streamline its operations and focus on developing its core businesses on the UK and US construction and infrastructure markets, commented group executive chairman Steve Marshall.
Sector: Business and Consumer Services
Target: Parsons Brinckerhoff Ltd
Buyer: WSP Global Inc
Vendor: Balfour Beatty Plc
Financing: Rights issue, Debt