Balfour Beatty Completes Sale of Its US Track Solutions Operations to Rhomberg Sersa Rail Group

Rhea-AI Summary

Balfour Beatty has sold its U.S. Track Solutions operations to Rhomberg Sersa Rail Group for $7.25 million. The Track Solutions division, generating annual revenue of $10 million, specializes in niche rail services, which will enhance RSRG's focus in the U.S. and Canada. Balfour Beatty is concentrating on its core rail services, including large capital programs and traction power. The transaction, completed on October 29, 2021, aligns with the company’s strategy to strengthen its rail business.

Positive

• Completion of the sale allows Balfour Beatty to focus on core rail services.
• The Track Solutions division generates $10 million in annual revenue, indicating a strong performance prior to the sale.

Negative

• None.

DALLAS--(BUSINESS WIRE)-- Balfour Beatty today announces the sale of its U.S. Track Solutions operations to Rhomberg Sersa Rail Group (RSRG) for $7.25 million.

The Track Solutions operations, which have an annual revenue of $10 million, provide niche services for the rail sector including track inspection, ballast cleaning and subgrade management and equipment and technology for private and public rail clients. This aligns with RSRG’s technology and services focus throughout Canada and the U.S.

Balfour Beatty’s U.S. rail sector strategy remains focused on its core operational rail services, including large capital programs, traction power and operate and maintain services (O&M). The Company ranks as the nation’s No. 8 top mass transit and rail contractors (per by Engineering News-Record annual Sourcebook listing) and is building some of the most complex and innovative rail projects in the U.S.

Leon Blondin, CEO of Balfour Beatty U.S. said, “This transaction supports our continued focus on our core rail business in capital programs and traction power, while also strengthening the Track Solutions team’s expertise and opportunities.”

The sale completed on October 29, 2021.

About Balfour Beatty

Balfour Beatty is an industry-leading provider of general contracting, at-risk construction management and design-build services for public and private sector clients across the United States. Performing heavy civil, rail and vertical construction, the company is part of Balfour Beatty plc (LSE: BBY), a leading international infrastructure group that provides innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth. Balfour Beatty is ranked among the top domestic contractors in the United States by Engineering News-Record. To learn more, visit www.balfourbeattyus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211029005382/en/

Media Contact:

Ashley Webb

+1 (214) 451-1706

awebb@balfourbeattyus.com

Source: Balfour Beatty

FAQ

What did Balfour Beatty announce on October 29, 2021?

Balfour Beatty announced the sale of its U.S. Track Solutions operations to Rhomberg Sersa Rail Group for $7.25 million.

How much revenue did Balfour Beatty's Track Solutions operations generate?

Balfour Beatty's Track Solutions operations had an annual revenue of $10 million.

What is Balfour Beatty's strategy after selling its Track Solutions division?

Balfour Beatty is focusing on its core operational rail services, including large capital programs and traction power.

Who acquired Balfour Beatty's U.S Track Solutions operations?

Rhomberg Sersa Rail Group (RSRG) acquired Balfour Beatty's U.S. Track Solutions operations.

What was the sale price of Balfour Beatty's Track Solutions operations?

The sale price was $7.25 million.