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Carillion lands £150m Lancashire deal and acquires in Canada

Carillion has been named preferred bidder in an £150 million deal to deliver property services to Lancashire County Council.

It comes as the contractor announces up to £525m of contracts in Canada, where it has also bought a stake in a support services firm for £24m.

This UK contract will initially focus on property development in East and North Lancashire.  

Carillion chief executive Richard Howson said: “We are delighted to have been selected by Lancashire as a strategic partner for this innovative contract. I believe our success reflects Carillion’s ability to provide a fully integrated solution to meet the property services needs of the county council.”

The scope of the services can be extended under the terms of the contract.

Carillion also said today that it has acquired a 49 per cent interest in The Bouchier Group for a consideration of £23.75m. It has options to acquire a further 36 per cent after five years, and the remaining 15 per cent over six to 10 years.

The Bouchier Group, which is based in Alberta, Canada, provides a range of services, including road maintenance, infrastructure services and facilities management, primarily for customers in the oil sector.

Mr Howson said: “Acquiring this interest in The Bouchier Group is an important strategic step in the development of our support services business in Canada.”

Carillion Canada has been selected for long-term contracts to provide year-round routine maintenance services for Provincial Highways in Ontario and Alberta, worth some £525m. Of this, some £475m relates to contract renewals.

The Ministry of Transportation Ontario has awarded Carillion the Area Maintenance Contracts for Kingston West and Bancroft, worth approximately £120m over 12 years and selected Carillion as the preferred bidder for the Thunder Bay Area Maintenance Contract, worth £105m over 11 years. The Alberta Ministry of Transportation has selected Carillion as the preferred bidder for five Contract Maintenance Areas, worth £300m over 10 years.

Mr Howson said it “further reinforces Carillion’s position as the largest provider of outsourced highways maintenance services in Canada”.

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