PwC has opened the bidding for firms interested in buying Carillion’s rail division along with a number of the company’s road maintenance and facilities management contracts, Construction News has learned.
Carillion’s liquidation special manager has set a deadline of the end of this Friday (9 February) for firms to bid for Carillion Rail, Network Rail’s second biggest supplier, with a decision expected to be made next week.
Network Rail said it was supporting PwC and that it would prefer Carillion’s rail arm to be sold in its entirety, as this would provide security for jobs, keep supply chains intact and ensure smooth transition on Carillion contracts.
If a buyer is not found for the whole rail business, interested parties will be able to bid for Carillion Rail contracts, which will be offered in bundles. Network Rail told CN it opened its “data room” for bids last Friday after a week of mapping out Carillion’s rail contracts.
The sale of Carillion’s rail division is one of six parts of the Carillion business currently on offer from PwC.
Carillion was Network Rail’s second biggest supplier in the 12 months to 31 March 2017, securing £372m of work – 5 per cent of Network Rail’s total spend.
Other parts of the business available include the firm’s M40 maintenance contract, its facilities management deals in Northern Ireland, and a number of other corporate, government and public sector FM deals.
PwC is also looking to offload Carillion’s recruitment business, SkyBlue Recruitment, and Carillion Advice Services.
PwC said: “The special managers have identified a number of contract packages that could potentially be offered for sale (whether as a group of contracts or by selling the shares in the appropriate company(ies)).
“The opportunity to conduct due diligence and to make an indicative offer in respect of any of these contract packages will be made available to those parties that have expressed an interest in the relevant contract package, and who have fulfilled certain other requirements (for example, entry into appropriate non-disclosure documentation on terms agreed with the special managers).”