Industry giant Laing O’Rourke has approached competitor Carillion with a bid to buy the contractor’s mechanical and electrical division Crown House Engineering.
Laing O’Rourke has made an audacious bid for Carillion’s m&e arm Crown House Engineering. Laing O’Rourke is the main contractor on the £3.6 billion Heathrow Terminal Five scheme; if the acquisition is successful it would enable the company to provide a full package on the project, as Crown House is already working on the scheme.

An initial statement from Carillion in early April confirmed that it has entered into talks with Laing O’Rourke concerning “the potential sale of its m&e business Crown House Engineering”. In its own statement the potential purchaser expanded on the reasons behind the bid, saying: “If successful, the proposed acquisition will mark a further step in Laing O’Rourke’s policy of offering total capability in the delivery of major projects.” The companies are now locked in negotiations and are unwilling to comment further until decisions have been made.

Crown House Engineering broke even in 2003, on a substantially reduced turnover. It entered 2004 trading profitably with a very strong order book.

If successful, this transaction will be the second between the two companies in under 18 months: last year Laing O’Rourke purchased Carillion’s piling subsidiary, Expanded, for £6.3 million. Industry analysts are speculating that if the bid is accepted it may be a further signal of Carillion’s intention to move away from the firm’s position as a total construction services provider.

Source

Electrical and Mechanical Contractor