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Lend Lease to exit seven European countries with Aecom deal

Lend Lease is set to sell two of its continental European businesses to Aecom – owner of Davis Langdon.

The deal will see Lend Lease exit seven European countries, with 250 staff set to transfer across to the consultancy and support services firm.

Once conditions are met on the deal, Lend Lease will be disposing of its interests in Russia, Austria, Switzerland, Portugal, Poland, Turkey and the Netherlands.

The contractor will sell its Russian construction and project management business.

It will also sell its North West Europe oil and gas business, formerly known as the BP alliance framework, which operates across eight countries.

With the sell-off subject to approvals, the contractor and developer said the deal will consolidate its resources in its offshore markets in Europe, the Middle East and Africa (EMEA).

The businesses predominantly provide fee-based construction services and have operations spanning nine countries.

Lend Lease said it has a small presence in these countries relative to the size of the overall EMEA business, adding that the sale will enable it “to focus its attention on its businesses with more substantial operations in EMEA”.

Dan Labbad – who leaves the role of EMEA chief executive to become group chief operating officer next month – said: “We are pleased to be able to announce the successful sale of these businesses.

“It will enable us to consolidate our resources in our EMEA markets where we believe we can build a leading position, and also further strengthens our capacity to invest in new opportunities.”

AECOM chief executive, Europe, Steve Morriss said:  “This team has an impressive track record, good client relationships and very talented people. 

“This move is in line with our strategy, enhancing our position in key countries in Europe and enabling us to enhance our support to clients in important growth sectors including real estate, manufacturing and industry, sports and oil and gas.

Lend Lease saw European construction profits rise by nearly 28 per cent in its 2012 financial year, it said last week.

Posting results for the year to June 2012, it said total pre-tax profits for the European division as a whole, which encompasses infrastructure investment and PFI assets, fell 22 per cent from £70.3m to £54.9m.

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