Balfour Beatty spends £60m on Californian acquisition

Balfour Beatty has spotted another bargain in America, spending £60m to snap up Barnhart, a construction management company based in California.

Barnhart is the largest programme management, construction management, and building company in San Diego. It is the sixth-largest education sector builder in the whole of the US.

It will become part of Balfour’s Heery International operation.

Ian Tyler, Balfour’s chief executive, said: “California is on of the US’s fastest growing markets.”

Barnhart was sold by its management and family owners.

In the 12 months to September 2007, Barnhart had a turnover of £270m and produced an operating profit of £9m. Its assets are put at £100m.

The confirmed orderbook stands at £500m.

When the deal was clinched, Barnhart had £25m of net cash in its system.

Heery International has 1,100 employees. It is engaged in design and construction projects worth over £3bn a year.

Heery has existing Californian operations in JCM and FPM, both acquired in 2005.