A US private equity firm is reportedly eying Balfour Beatty’s Workplace division in a move to create a new FM player in the UK.
The FT said today that New York-based buyout group Clayton Dubilier & Rice is exploring a combination of the office maintenance business units of Balfour Beatty and Rentokil Initial.
It said UK pest control and hygiene group Rentokil and CD&R are holding talks on the plan, according to sources.
Workplace has has an annual turnover of £650m and employs 15,000 people, and is valued at around £200m, according to the FT. But Balfour Beatty is looking to focus on core markets.
It comes amid other consolidation in the FM market, with Ferrovial’s recent acquisition of Enterprise and Kier’s proposed takeover of May Gurney.
A Balfour Beatty spokesman declined to comment today.
The group made an announcement to the markets in February following reports of Workplace being up for sale. It confirmed it is “exploring strategic options” for the business.
In March, construction director Mike Peasland told CN that Workplace is “not definitely for sale”.
WorkPlace focuses on commercial enterprises, along with schools, industrial locations, hospitals, governments and institutions.