Balfour Beatty has said it is “exploring strategic options” for the future of its facilities management business
Balfour Beatty has said it is “exploring strategic options” for the future of its facilities management business, following reports the contractor has appointed Citigroup to advise on the sale of the division.
The report in the Financial Times said the UK’s largest contractor was planning to dispose of WorkPlace – which provides facilities management services to hospitals, schools and governments – in a transaction that would value the division at about £250m.
According to the report, Balfour Beatty has sent financial information to potential bidders, which include private equity firms and trade buyers, with indicative bids due by mid-February.
WorkPlace has annual turnover of £650m and employs 15,000 people, according to Balfour Beatty’s website.
In response to the report, the contractor said it “notes today’s press speculation regarding its UK facilities management business and confirms that it is currently exploring strategic options for this business in keeping with its strategy to focus on economic infrastructure.
“A further announcement will be made when appropriate.”
Selling the business would be in keeping with the firm’s move to focus on infrastructure and global markets.
Last month, the company said that Ian Tyler, its chief executive, was stepping down and that his deputy, Andrew McNaughton, in charge of operations outside the UK, was going to replace him, as it seeks more contracts in emerging markets.