Australian contractor Lend Lease has acquired Bilfinger Berger’s Valemus Australia, the parent company of Abigroup and Baulderstone, both with extensive tunnelling experience, for US$957M. The move places Lend Lease as Australia’s second largest construction company behind Leighton Holdings, and signifies Bilfinger Berger’s withdrawal from the Australian heavy civils construction market.
Bilfinger Berger said, “The (remaining) net cash inflow of over €500M (US$655M) will be invested in the further expansion of Bilfinger Berger’s services business.”
“The sale of Valemus Australia, which will generate an output volume of over €3bn (US$4bn) in 2010, is a significant step for Bilfinger Berger in the reduction of the company’s construction business as planned.”
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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 US$5bn in total secured revenue with an extensive pipeline of further opportunities and a high proportion of Government customers,” said Mr McCann.
Lend Lease says the acquisition is consistent with its strategic direction and focus on the key growth trends that underpin long term demand for property, including infrastructure and public private partnerships. Valemus provides a 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.