GDF SUEZ, through its Energy Services business line, has announced the purchase of Balfour Beatty’s UK Facilities Management business – Balfour Beatty Workplace. The acquisition will give GDF SUEZ, through its primary brand Cofely, a strong position in energy services, technical services & facilities management in the UK. With its existing Cofely business, GDF SUEZ Energy Services currently employs 2,200 people in the UK, providing similar services to 13,000 customer sites in commercial, industrial and public sectors. It is also the UK’s largest provider of District Energy.
The enlarged activities will generate annual revenues of approximately £800 million (approximately €930 million).
Balfour Beatty WorkPlace provides a range of services to thousands of facilities nationwide, including numerous hospitals, schools and local government establishments. The business has a number of major contracts in the UK with clients including, the Department for Work and Pensions, HM Revenue & Customs, North East Lincolnshire Council as well as the Romec joint venture with the Royal Mail Group, which provides a wide range of technical and building services to Royal Mail, Post Office and Parcelforce Worldwide.
The business is expected to continue to provide facilities management services to Balfour Beatty’s current portfolio of social infrastructure PPP assets in the UK and to collaborate with the Group on the development of its investments in the future.
Commenting on the acquisition, Jérôme Tolot, CEO of GDF SUEZ Energy Services, said: “This acquisition will consolidate the Groups significant European position in energy and facilities services and will also create a strong position for GDF SUEZ in the UK. It is fully in-line with the Group strategy to provide innovative and energy efficient solutions for customers across all sectors of the built environment, assisting them with the transition to a low carbon economy and in the creation of the Cities of Tomorrow”.
The implied enterprise value of the business on a debt and cash free basis is £190 million (approx. €220 million). The cash consideration will be reduced by pension liabilities and any net debt transferring with the business and is subject to certain adjustments based on completion accounts. Completion is expected in the fourth quarter of 2013, following the finalisation of completion accounts as at 27 September 2013 and remains conditional on inter alia, relevant competition clearance.
www.cofely-gdfsuez.co.uk 020 8221 6530
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