Balfour Beatty acquires Barnhart
06 June 2008
Barnhart is the largest programme management, construction management and building company in San Diego and among the largest in California. It is the sixth largest education sector builder in the US as a whole.
In the year to 30 September 2007, Barnhart had gross revenues of US$ 530 million and operating profits of US$ 17 million, with gross assets of US$ 197 million.
It has a confirmed order book of approximately US$ 1.1 billion gross. At financial close, it is anticipated the company will have a net cash balance in excess of US$ 50 million.
The acquisition, which will be funded from Balfour Beatty's own cash resources, is based on a balance sheet with US$ 35 million of net assets, with a dollar for dollar adjustment against actual net assets acquired. An additional US$ 7 million will be paid for incremental tax benefits.
In a statement on its website, Balfour Beatty chief executive Ian Tyler said, "Heery International is already a national leader in the US public education sector. California is one of the US's fastest growing markets offering substantial opportunity in education and other construction management markets.
"The addition of Barnhart substantially enhances the Group's presence in education and in California, where we are already a major player in civil engineering and construction project management."