Lend Lease (LLC) announced that it has entered into an agreement with Bilfinger Berger SE to acquire 100% of Valemus Australia, the parent company of Abigroup, Baulderstone and Conneq, for a purchase price of A$960 million.
The Valemus businesses are leading providers of services in the engineering, construction, residential and non residential building, and engineering services markets in Australia. The acquisition of Valemus will increase Lend Lease’s capabilities and activities in the engineering and construction market and diversify Lend Lease’s position in this sector. The acquisition is consistent with Lend Lease’s strategic direction and focus on the key growth trends that underpin long term demand for property, including infrastructure and public private partnerships.
Valemus provides an excellent platform for Lend Lease to expand its capabilities with a significant presence in the road, rail, social infrastructure, commercial and industrial building sectors with operations diversified across engineering, construction and services; an extensive government client base across federal and state governments; in excess of 150 contracts currently in hand; secured future revenue in excess of A$5 billion; and strong depth of senior management experience with a positive cultural fit with Lend Lease’s existing business.
The acquisition will be funded from existing Lend Lease cash reserves and a new five year A$225 million debt facility. Lend Lease’s gearing post the acquisition is expected to be approximately 5.8% taking account of the significant Valemus cash balance of A$539 million as at 30 September 2010. Lend Lease will continue to maintain significant capacity to deliver on its existing pipeline.
Lend Lease Group Chief Executive Officer and Managing Director, Steve McCann, said the acquisition of Valemus provides Lend Lease with an excellent strategic platform in the engineering and construction market in Australia. “Valemus has a highly successful and experienced management team with diverse sector expertise that will add to the depth of our Australian management and broaden our skill set in the construction sector. Valemus has in excess of A$5 billion in total secured revenue with an extensive pipeline of further opportunities and a high proportion of Government customers,” said Mr McCann.