Thursday, September 17, 2009

Balfour Beatty to buy Parsons Brinckerhoff

Yes, you read that headline (printed this morning on MarketWatch and Reuters, among others) correctly.

According to an article posted a few minutes ago on Marketwatch,com, the London, England-based engineering firm Balfour Beatty said earlier today that it will acquire Parsons Brinckerhoff for $626 million and will finance the deal with a rights issue.

The acquisition and rights issue, taken together and before exceptional items, are expected to enhance earnings per share in 2011, Balfour Beatty said. The rights issue will be fully underwritten on a three for seven basis and will raise approximately 353 million pounds ($583.19 million U.S.).

"The acquisition of Parsons Brinckerhoff represents the realization of a number of key strategic objectives for Balfour Beatty. In particular, we believe it makes us one of the world's major players in professional services, substantially strengthens our U.S. presence and puts Balfour Beatty in an excellent position to take advantage of increased infrastructure spending," the firm said.

Shares jumped 8.1 percent in London on the news of the deal.


No comments:

Follow @PSMJ_Resources