Laing O鈥橰ourke has purchased Carillion鈥檚 m&e arm Crown House Engineering in a deal worth 拢17.3 million. The sale includes all of Crown House鈥檚 live contracts and is expected to complete by the end of June.
Carillion chief executive John McDonough commented: 鈥淭he sale of Crown House is in line with our consistent strategy for sustainable profitable growth.鈥�

The purchase builds on Laing O鈥� Rourke鈥檚 plans to offer clients total project provision and adds to its building services expertise; m&e contractor Ellis Mechanical Services is part of the group.

The 拢17.3 million price for the sale was receivable in cash. This generated a net exceptional profit of 拢9.9 million. The price is subject to a net asset adjustment at completion. In addition, goodwill of 拢55.1 million relating to the original purchase of Crown House has been previously written off to reserves.

Speculation has arisen over possible redundancies at Crown House鈥檚 Wolverhampton headquarters, with numbers as high as 40 being mooted. Laing O鈥橰ourke declined to comment.

Source

Electrical and Mechanical Contractor