Balfour Beatty to sell US unit for £42m

Balfour Beatty said it was selling its US unit Heery to CBRE Group for $57m (£42m) to allow it to expand operations in the region.

Heery is a full-service engineering and programme management, architecture and interior design firm.

Balfour said in certain US markets, acting as programme manager on a contract precludes a company from bidding as general contractor due to perceived conflicts of interest.

“The sale of Heery removes this constraint from the group's US buildings operation, while enabling it to partner with Heery on a wide range of potential projects going forward,” Balfour said in a statement.

The transaction is expected to complete before year end, it added.

For the year ended 31 December 2016, Heery's gross assets were £78.2m, net assets £21.5m and pre-tax profit £2.4m. This transaction will release funds to Balfour Beatty to be used in the normal course of business, the company said.