MJ Gleeson has sold its civil engineering business to US construction giant Black & Veatch for 拢36m, following a four-month sale process, which also saw Balfour Beatty vying for the division.
The 拢200m-turnover business specialises in water-related construction, which is also the main focus of Black & Veatch鈥檚 activities in the UK. Gleeson will use the proceeds from the sale to reduce debt.
The sale is part of Gleeson鈥檚 plans to focus on housing regeneration and dispose of non-core businesses. The restructuring is part of the management鈥檚 plans to improve profitability.
Since the restructure was announced, Gleeson has been busy selling off other parts of its business. Last year Gleeson disposed of its construction division and earlier this year it sold its railway engineering business Gleeson MCL and Concrete Repairs, a specialist structural renovation business. Most of its commercial property portfolio was sold in June.
The engineering division generated 拢2.8m profit for the year ended 30 June 2006 and had gross assets of 拢40.1m and net cash of 拢21.1m. Gleeson said the sale provided the division鈥檚 950 employees with 鈥渟ignificantly enhanced鈥� career opportunities.
The acquisition more than doubles the size of Black & Veatch鈥檚 UK water operation, which now has nearly 2,000 employees. Tony Collins, managing director of the UK water business, said: 鈥淭he two organisations have complementary alliances and skills. The aim is to have one business by September 2007.鈥�
Postscript
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