Bouygues UK: wants four regional contractors - and Jarvis?

Bouygues UK is on the lookout for four more regional construction groups, having recently snapped up Warings, the £100m-a-year turnover operator based in the south of England.

Also, its search for a new foothold in areas of operation where it is currently absent means that it could also be interested in something much bigger – namely Jarvis.

Olivier-Marie Racine, chief executive of Bouygues Batiment International, said: “We are opportunistic and could be interested in Jarvis - it will probably be bought within the next 12 months.”

He gave two reasons behind the decision to buy Warings.

“We want a national network of companies like that and Warings is in the south east region where there are a lot of opportunities to expand,” said Racine.

“Also, it has a lot of framework and partnership agreements and all have a lot of potential for the future.

“Warings is a first step and we are looking for future acquisitions.

“We now want to bring Warings some added value on the PFI front. We do projects upwards from £5m and it operates in the smaller sector up to that figure. What we particularly liked was the Warings philosophy whereby the first thing they ask themselves, when a potential opportunity appears, is will we have the right resources.

“For them, working outside the south east is like asking them to work abroad, but now if one of their national clients asks them to work outside that area, we can move forward on that. If we buy a comparable contractor in the Midlands, say, we could expand that Warings’ expertise to advantage.

“We are not looking for a bargain – we did that in the past without success.

“What we like about Warings is that it is stable and profitable, though profit level is not the best we could expect. We saw areas we could improve.”

Racine is the man who strikes the deals and he says it’s all down to initial chemistry.

Colas is the most profitable of Bouygues’ businesses and when Racine goes to a new company that might be in his sights, to add into Colas, he explains: “I go and meet the managing director. If his thinking fits with mine the rest will follow. A deal is on.”