Balfour Beatty buys

Balfour Beatty has acquired Walgrave Contracting Services, a UK distribution cable service provider, and Security International, a US electronic access control systems business.

Balfour Beatty, the international engineering, construction and services group, has acquired Walgrave Contracting Services, a UK distribution cable service provider, and Security International, a US electronic access control systems business. The initial cash consideration for these two transactions is approximately £8 million.

Walgrave, a privately owned company, will become part of Balfour Beatty Power Networks, the Group’s international overhead power line and cabling arm. Security International will become part of Andover Controls, the US building management control systems designer and controller.

Walgrave works principally with East Midlands Electricity and 24 Seven. It has current annual sales of approximately £20 million which are anticipated to grow in future years as annual contracts are extended and the market expands, as a result of both increased outsourcing and the growth of the privately-financed street lighting market.

The acquisition broadens Balfour Beatty’s existing portfolio of skills in the growing utility services market. This includes Balfour Beatty Power Networks with annual sales of approximately £120 million and John Kennedy and Kentons with combined current annual sales of approximately £160 million. Kennedy and Kentons supply upgrade and maintenance services to the gas and water markets.

Security International is a provider of single source electronic access control solutions to the security systems market. Together with Integral Technologies, acquired in July 2000, it will form a new security system division within Andover Controls.

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