Balfour Beatty’s US arm has reached agreement to acquire Howard S Wright for an estimated $93M (£58M).
Balfour Beatty Construction US will pay £44M up front with a further amount to be paid over 4.5 years, conditional on the satisfaction of certain financial projections. This sum is estimated to be £14M but could hit £25M.
Howard Wright provides preconstruction, general contracting and construction management services across a wide range of sectors including corporate office, healthcare, education, data centres and multi-family housing.
Entry into the buildings construction market in Northern California and the Pacific Northwest is in line with Balfour Beatty’s US expansion strategy and follows its acquisition of SpawMaxwell in Houston and its recent growth in Southern California through Barnhart Balfour Beatty.
Howard Wright generated revenues of £257M and pre-tax profits of £14.6M in the year ended 30 September 2010.
“Howard S. Wright is a well-regarded company with a strong reputation for quality as evidenced by its blue-chip customers, and is a leader in sustainable building,” said Balfour Beatty chief executive Ian Tyler.
“HSW is an excellent geographic and strategic fit with our existing US capabilities, and the acquisition extends Balfour Beatty’s skill base and reach in Northern California and the US Pacific Northwest, a significant growth market that is emerging from the downturn.”