Product category:
Construction companies
News Release from: Balfour Beatty
Edited by the Buildingtalk Editorial
Team on 20 March 2008
Balfour Beatty acquires Dean and Dyball
for GBP45m
Acquisition of Dean and Dyball is latest stage in strategy of building leading positions in regional UK civil engineering and building markets.
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 and Dyball Limited, a leading UK regional civil engineering and building business, for a cash consideration of approximately GBP45 million Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler, said: "The acquisition of Dean and 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 article was originally published on Buildingtalk on 19 Jun 2007 at 8.00am (UK)
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"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.
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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 and 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 and Dyball.
Dean and 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 and 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 and Dyball had a turnover of GBP262 million and profit before interest and tax of GBP4.5 million.
Net assets at 30 September 2007 were GBP18.4 million and included GBP8.6 million of net cash and GBP11.25 million of freehold and long leasehold properties.
The Market.
UK regional civil engineering and building markets are growing significantly.
Dean and 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.
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