New York-based CD&R eyes merger of Balfour Beatty and Rentokil鈥檚 FM divisions
A New York-based buyout group is sizing up a potential merger of Balfour Beatty and Rentokil鈥檚 facilities management divisions, according to the Financial Times.
Buyout firm Clayton Dubilier & Rice (CD&R) is holding talks on the plan with Rentokil, the report says.
The move could see Balfour Beatty and Rentokil dispose of and merge their facilities management divisions 鈥� which turn over 拢650m and 拢593m respectively.
Balfour Beatty鈥檚 facilities management division, WorkPlace, won a ten-year contract to run Queen Elizabeth Olympic Park last year.
Rentokil has been growing its facilities management arm 鈥� called Initial Facilities Services 鈥� through a series of acquisitions, including a takeover last year of Modus FM.
Sources close to the talks said any potential transaction could value Workplace at 拢200m and Initial Financial Services at up to 拢400m, the Financial Times said.
said it was 鈥渆xploring strategic options鈥� for the future of its facilities management business, following reports the contractor has appointed Citigroup to advise on the sale of the division.
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