Balfour Beatty has bought a military accommodation business GMH Military Housing from US investment trust GMH Communities.
The construction and investment company has paid $350.5m (£176.4m) in a cash deal for the public private partnership.
‘The acquisition of GMH's military accommodation business is central to implementing our US strategy of building a high-quality, domestic US business similar to our very successful UK model,’ said Balfour Beatty chief executive Ian Tyler this morning.
‘It adds a major, high-quality PPP business to our US group in one of our key target market sectors.
Excellent springboard
‘GMH will be an excellent springboard into other emerging PPP and support service sectors in the US market, will immediately enhance earnings and generate significant value for our shareholders.’
GMH, which will be renamed Balfour Beatty Communities, is responsible for the development and management of military accommodation projects for the US Army, Navy and Air Force.
The Philadelphia based firm has 800 staff and 15 deals with the military, spanning 30,000 family homes and 42 US bases.
The deal follows last year’s acquisition of US construction firm Centex, a partner of GMH on several military housing projects.
