Balfour Beatty acquires Fru Con
By Helen Wright17 June 2011
UK-based Balfour Beatty has acquired Bilfinger Berger's US water and wastewater infrastructure subsidiary Fru Con for US$ 20 million.
Fru Con specialises in the construction of sewage treatment plants and in the past year generated revenues of US$ 80 million. Balfour Beatty CEO Ian Tyler said the acquisition of the Virginia-based contractor added to the company's expertise in water infrastructure projects.
"The acquisition of Fru Con is a significant step in enhancing our capabilities in the attractive US water market," Mr Tyler said.
Balfour Beatty added that the deal would enable it to grow further in the mid-Atlantic and California markets, as well as other regions including the Carolinas, Georgia, Florida and Texas.
Meanwhile, Bilfinger Berger said the sale was part of its strategic refocus on its services activities. In March, the company completed the AU$ 960 million (US$ 966 million) sale of its Australian subsidiary, Valemus, to Lend Lease - a deal which it said opened up "considerable scope for investment in corporate development".
Bilfinger Berger said it would reinvest the cash from the Valemus transaction into the further expansion of its services business.