Suez Takes Another Bite - Worth £2.5billion

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• Suez Takes Another Bite - Worth £2.5billion

07 July 2014 | Updated 01 January 1970

GDF Suez through its Cofely  subsidiary has completed the purchase  of Lend Lease Group’s UK facilities management business.

GDF Suez through its Cofely  subsidiary has completed the purchase  of Lend Lease Group’s UK facilities management business, This acquisition will make Cofely one of the UK’s largest providers of technical services PFI (Private Finance Initiative) and provide an increased portfolio of long-term FM contracts in public sector and healthcare markets. Over the next 25 years these contracts will provide Cofely with a guaranteed revenue stream of £2.5billion. The transaction will also give Cofely a significant, new lifecycle management capability to its business, which includes building fabric and major repair & replacement.

Lend Lease FM currently provides a range of FM services across the UK and Ireland, with particular focus on healthcare, education, government and retail. The business has a number of large long-term contracts with clients comprising a number of major National Health Service Trust hospitals at locations including Manchester and Leeds, Local Education Authorities in Birmingham and Lincolnshire, HM Treasury and Bluewater Shopping Centre.

LLFM will be combined with Cofely’s existing UK business with immediate effect, with the new entity operating under the Cofely brand. 

Commenting on the acquisition Jérôme Tolot, GDF Suez Executive Vice President, in charge of the Energy Services Business Line said: “The acquisition of LLFM reinforces our strategy to further evolve our business here in the UK. It continues to strengthen our service capability. LLFM has many synergies with our existing business and it will also provide us with the addition of a full lifecycle management capability. This will allow us to introduce and integrate new smart & low carbon energy efficient technologies into buildings for customers over the term of the contracts”.

The acquisition follows Cofely’s purchase of Balfour Beatty WorkPlace in late 2013 and a number of significant contract successes in June 2014. These include a £300m FM contract with Telereal Trillium for the Department of Work & Pensions portfolio and a long-term contract with BP for utility services at Sullom Voe Oil & Gas Terminal in the Shetland Islands. 

Article written by Brian Shillibeer | Published 07 July 2014

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