UKÔÇÖs Balfour Beatty in $626 million deal

UK engineering and construction company Balfour Beatty has agreed to buy New York-based transportation engineering group Parsons Brinckerhoff for $626 million.  Balfour, one of the largest construction firms in the UK and the fifteenth largest in the world, has made the acquisition as it seeks to increase its presence in the US and offer a more comprehensive service to its clients. Established in 1885, Parsons has played a part in some of the worldÔÇÖs most significant infrastructure and construction projects, including New York CityÔÇÖs first subway, the Taiwan high-speed rail line and the Palm Jumeirah development in Dubai. London-based Balfour has said that acquiring Parsons will boost its position in the public works and infrastructure market in the US, at a time when the Obama administration is planning to spend billions on improvements across the country. The takeover, which will be largely funded by a $582 million rights issue, is the largest in BalfourÔÇÖs history. Keith J. Hawksworth, CEO of Parsons Brinckerhoff, said of the deal: ÔÇ£Balfour Beatty shares our values, our culture and our commitment to professionalism, integrity and technical excellenceÔÇöprinciples that have guided us for nearly 125 years and Balfour Beatty for the last century. ÔÇ£The combination [of Balfour Beatty] with PB creates an organization with world-class capabilities in project development (including financing), design, management or delivery of construction services, and the operations and maintenance that can be provided through our combined local office global footprint.ÔÇØ Balfour has said that once the deal is finalized, Parsons will operate as a subsidiary and maintain its individual brand. It also confirmed that no jobs would be lost as a result of the acquisition. In 2008, Parsons had revenues of $2.3 billion and approximately 13,000 employees in over 100 offices across the world. In 2008, Balfour bought GMH Military Housing, a US-based military accommodation firm for ┬ú180 million. Founded 100 years ago, Balfour employs 40,000 people worldwide. *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *