Leighton Holdings has completed a deal to sell half of its share in its assets services arm to Apollo Global Managemen for AU$ 700 million (US$ 570 million).
The move forms part of the Australian construction group’s restructuring operations following Hochtief taking a controlling stake in the company earlier this year.
As part of the latest move, Apollo will form a 50:50 partnership with Leighton to manage merged maintenance services of Thiess Services and Leighton Contractors Services. This includes construction, design and maintenance services for the communications, energy and industrial sectors.
Under terms of the sale, the newly-formed business will require scrutiny from the Foreign Investment Review Board and New Zealand Overseas Investment Office.
The united operations of the two companies will form one of the largest service firms in Australia - posting combined revenues of AU$ 2.2 billion (US$ 1.8 billion) and employing a total of 6,400 staff.
Confirmation of the move follows Leighton’s decision to sell off its interest in Australian-based contractor John Holland for a sum of US$ 947 million).
Leighton Holdings CEO Marcelino Fernández Verdes believed that the deal would have strong benefit to both companies.
He said, “As part of our strategic review announced in June, we have undertaken a thorough analysis of our services business to ensure we maximise opportunities in the growing industrial and civil infrastructure services sector.
“By choosing to partner with funds managed by Apollo, we gain access to Apollo’s expertise in creating a single, integrated and efficient business which will be better able to compete in the Australian market place.”