Consultant WSP has bought Parsons Brinckerhoff from Balfour Beatty in a deal worth £820 million.
Recent negotiations over a proposed merger between Balfour Beatty and Carillion hit a stumbling block after Carillion insisted that any deal was dependent on Balfour keeping Parsons Brinkerhoff. However, Carillion eventually walked away and Balfour has now completed the sale of Parsons Brinkerhoff.
Steve Marshall, executive chairman of Balfour Beatty, said: “The Board believes that the sale price of £820 million delivers both a significant return on our original investment and a compelling level of value creation for shareholders – which remains the key focus of the Board. The sale of Parsons Brinckerhoff follows the recent revaluation of our investments portfolio, which underlines the potential of this division to create value internally and across the Group. In the US, our core construction business is well positioned in a recovering market. In the UK we see the potential for margins to progressively recover to peer group levels. Our services business, meanwhile, is well placed to benefit from the growing investment in infrastructure. Together, these elements will provide a strong foundation for an incoming Group CEO to take the company forward.”
Pierre Shoiry, president and chief executive officer of WSP, said: “We are pleased to be joining forces with a firm of Parsons Brinckerhoff’s long-standing reputation and know-how as we expect this transaction to create an industry leader, with the ability to deliver more expertise and services to our client base across the world.”