Balfour business buys Barnhart

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Heery International, the US professional and technical services division of Balfour Beatty, has acquired California-based construction management company Barnhart for $116m.

Headquartered in San Diego, Barnhart employs 450 people and is engaged in design and build, fee based construction management and programme management. Its major clients include San Diego State University, California State University, University of California, Pasadena City College and San Diego Lindbergh Field Airport.

In the year to 30 September 2007, Barnhart had gross revenues of $530m and operating profits of $17m, with gross assets of $197m. It has a confirmed order book of approximately $1.1bn gross. At financial close, it is anticipated that the company will have a net cash balance in excess of $50m.

The acquisition fee, which will be funded from Balfour Beatty’s own cash resources, is based on a balance sheet with $35m of net assets, with a dollar-for-dollar adjustment against actual net assets acquired. An additional $7m will be paid for incremental tax benefits.