* Balfour buys part of Rok's housing, construction business
* New businesses to add around 100 mln stg/yr to sales
LONDON, Nov 19 Balfour Beatty (BALF.L) has
bought some of collapsed UK maintenance firm Rok's affordable
housing and construction businesses for 7 million pounds, it
said on Friday.
Balfour, Britain's market leader in big-ticket construction
projects, said the newly acquired businesses and their 381
employees would be folded into Mansell, its regional
construction business, and would add around 100 million pounds a
year to group sales.
"Rok's operations in affordable housing, which are
principally in the South West and North West of the UK, will
support Mansell's strategy of being a leading provider in
affordable housing where long-term demographics are favourable,"
Balfour said in a statement.
"Rok's general construction activities will enhance
Mansell's existing capabilities at Heathrow and Gatwick airports
as well as expanding its geographical presence into the South
Rok went into administration earlier this month after
difficulties meeting financial obligations, two months after
bigger rival Connaught collapsed. [ID:nLDE6A7098]
Balfour, which helped build the world's biggest shopping
centre, the Burj Mall in Dubai, said it had paid an initial 4
million pounds and would settle the remianing balalncce once
contracts were exchanged.
"We are working with Rok's administrator towards an
efficient transition of these operations to minimise disruption
to clients and to protect jobs in the operations we are
acquiring," Balfour added.
Shares in Balfour Beatty, which have risen 7 percent in the
last three months, closed at 279.30 pence on Thursday, valuing
the company at around 1.9 billion pounds.
(Reporting by Rhys Jones, Editing by Matt Scuffham)