The recent sale of Lendlease’s UK Construction business to Atlas Holdings “represents a positive outcome” for its 1,100 UK workforce which will all transfer in the sale, the group’s CEO said.
On 1 January, Lendlease and US private equity firm Atlas entered into a binding agreement for the sale of Lendlease’s UK Construction business.
Atlas will acquire Lendlease’s construction business and its operations including existing employees and leadership team, to ensure a seamless handover for clients and business partners.
Lendlease’s European business, mainly in the UK with a smaller presence in Italy, employs approximately 1,200 staff.
Under the terms of the agreement, Lendlease will receive £35 million cash consideration, including £10 million deferred until June 2026.
The profit outcome is expected to be neutral after providing for retained risks in relation to projects that have completed or substantially completed prior to exchange of the sale agreement.
Lendlease’s UK Construction business was founded in 1885 as Bovis Construction and acquired by Lendlease in 1999.
The company has been involved in some of the UK and Europe’s most iconic construction projects including the rebuilding works of Regents Street in 1923, Lloyds of London’s City Head Quarters in 1980, the first phase of Canary Wharf in 1991 and 8 Bishopsgate in the City of London.
Founded in 2002, Atlas and its affiliates own and operate 26 platform companies including global façade specialist Permasteelisa Group.
Atlas employs more than 50,000 associates across 350 facilities worldwide, which generate revenues of approximately US $16 billion annually.
Lendlease Group CEO Tony Lombardo said: “This transaction builds on our progress to simplify Lendlease as we look to lower our risk profile and increase securityholder returns.
“It also represents a positive outcome for our talented people and our valued customers and clients, marking a new chapter under the ownership of Atlas.”
Peter Bacon, Atlas operating partner, said: “We are excited to acquire one of the UK’s leading construction companies, which has a long track record of successfully delivering large complex projects for both private and public sector clients.
“We look forward to working with David Cadiot and his team continuing to build the business.”
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