Centex completes sale of commercial construction division to Balfour Beatty
03/04/2007
Centex Corporation announced it has completed the sale of its commercial construction division, Centex Construction, to Balfour Beatty PLC, the leading UK-based international engineering and construction group, for approximately $362m, subject to certain adjustments.
The transaction furthers Centex's strategy to "focus on its core home building operations", a process that started with the sale of its UK home building operations, Fairclough Homes, in September 2005, followed by home equity lending group Centex Home Equity Co. in July. Centex Construction's financial results will now be reported as a component of discontinued operations, and will be renamed Balfour Beatty Construction LLC with immediate effect.
Dallas-based Centex, founded in 1950, is one of the US's leading home building companies. Centex operates in 25 states and delivered more than 39,000 homes in 2006. Its leading brands include Centex Homes, Fox & Jacobs Homes, CityHomes and Centex Destination Properties.
Balfour has declared the acquisition as "a major step forward in the group's long-term strategy of building a major domestic presence in the US" on their UK model.
