Keith J. Hawksworth, the CEO of Parsons Brinckerhoff
Inc. (PB), the employee-owned engineering, strategic consulting, planning and
program/construction management firm founded in New York City in 1885, announced recently
that the company's Board of Directors and Executive Committee are recommending to
shareholders to approve the acquisition of PB by the London-based infrastructure firm Balfour
Beatty plc (BB) for $626M. PB's Shareholders' Meeting will take place on October 21st.
"We have for some time sought a strategic partner that complements the services we provide
which would assist us in our on-going global expansion," Mr. Hawksworth said. "Balfour Beatty
shares our values, our culture and our commitment to professionalism, integrity and technical
excellence – principles that have guided us for nearly 125 years and Balfour Beatty for the last
In a letter to all employees sent earlier recently, Mr. Hawksworth explained, "The combination [of
Balfour Beatty] with PB creates an organization with world-class capabilities in project
development (including financing), design, management or delivery of construction services,
and the operations and maintenance that can be provided through our combined local office-global
James L. Lammie, the Chairman of the Board of PB, added, "Balfour Beatty has agreed that
Parsons Brinckerhoff will retain its name and organizational structure and operate as an
independent but wholly-owned subsidiary. We believe this will allow us to continue to meet our
clients' needs in ways they expect while expanding into new areas that will provide additional
opportunities for our employees."
The two firms are highly complementary, with PB greatly assisting in expanding Balfour Beatty's
vision in becoming a global integrated leader in infrastructure services through the addition of
world-class professional services capabilities. Client service will be a prime focus of the
combined organization with no changes in project managers, technical staff and/or executive
leadership with whom PB's clients work as a result of the acquisition.
The acquisition must be approved by the shareholders of both organizations.
Balfour Beatty Chief Executive Ian Tyler said in a taped message to PB employees, "Clients are
absolutely the center of what we do….I'm very excited about bringing the two organizations
together. Above all, though, I'm absolutely clear that we need to maintain the brand, the values,
the culture, and the processes of Parsons Brinckerhoff as a complete entity." Mr. Tyler went on
to say, "We share Keith's ambition of developing an organization with genuine global reach
across the whole spectrum of infrastructure investment, development, and particularly the
creation and care of essential assets….Bringing the two organizations together will bring real
opportunities and real value. "
In 2008, PB had revenues of $2.34B and approximately 13,000 employees in over 100
offices worldwide. The publicly traded Balfour Beatty has
approximately 40,000 employees and last year had revenues of approximately $15B.
About Parsons Brinckerhoff
Parsons Brinckerhoff is a leader in developing and operating infrastructure for clients
and communities in the Americas, Europe, Africa, the Middle East, Asia and Australia-Pacific
regions. PB offers skills and resources in strategic consulting, planning, engineering,
program/construction management, and operations for all modes of infrastructure, including
transportation, power, community development, water and the environment. For more information, visit: www.pbworld.com.
About Balfour Beatty
Balfour Beatty is an international engineering, construction services (including facilities
management), professional services and investment group, offering customers a wide range of
capabilities across infrastructure markets with a particular focus on the public sector and
The firm works in partnership with its customers principally in the UK, the US, South-East Asia
and the Middle East, who value the highest levels of quality, safety and technical expertise.
Key infrastructure markets include transportation (roads, rail and airports); social infrastructure
(education, specialist healthcare, and various types of accommodation); utilities (water, gas and
electricity) and commercial (offices, leisure and retail). Balfour Beatty delivers services essential
to the development, creation and care of these infrastructure assets including investments,
project design, financing and management, engineering and construction and maintenance
Balfour Beatty's strong financial position offers continuing flexibility to make appropriate
investments in long-term growth opportunities. For more information, visit: www.balfourbeatty.com.
SOURCE: Parsons Brinckerhoff