Balfour Beatty is planning a friendly takeover of Parsons Brinckerhoff, the engineering, strategic consulting, planning and construction management firm that was founded in New York in 1885.
The board of Parsons Brinckerhoff is recommending that its shareholders approve the $626m (£385m) acquisition by London-based Balfour Beatty, which is to be financed through a fully underwritten rights issue of 205.5 million new shares that will raise approximately £353m.
Balfour Beatty has agreed that Parsons Brinckerhoff will retain its name and organisational structure and operate as an independent but wholly-owned subsidiary. No changes in project managers, technical staff and/or executive leadership with whom Parsons Brinckerhoff’s clients work will be made as a result of the acquisition.
In 2008, Parsons Brinckerhoff had revenues of $2.34bn and approximately 13,000 employees in more than 100 offices worldwide. The publicly traded Balfour Beatty has approximately 40,000 employees and last year had revenues of approximately $15bn.
The acquisition must now be approved by the shareholders of both organisations.