ACCIONA completes the acquisition of Lendlease Engineering’s ongoing business
September 9, 2020
ACCIONA has completed the acquisition of the ongoing Lendlease Engineering business as announced on 19 December 2019. The acquisition, along with new projects won in recent months, increases ACCIONA’s infrastructure backlog in the country to approximately AU$4 billion (€2.47 billion) across a vast range of private and public sector contracts.
The transaction, valued at AU$160 million (€99 million) comprises the majority of Lendlease Engineering’s construction projects. Under the terms of the agreement, the NorthConnex, the Kingsford Smith Drive and the Melbourne Metro projects will remain with Lendlease. The deferred consideration is payable in three tranches, the last one in June 2021.
The consolidated capability and the additional construction pipeline reinforces ACCIONA’s position as a leading Australian contractor. It will also allow ACCIONA to accelerate the pace of growth of its infrastructure business in Australia, a key strategic market for ACCIONA’s infrastructure and renewable energy businesses.
“The acquisition sees ACCIONA join the ranks of the top tier Australian constructors by enabling us to expand not only the volume of work but also the breadth of work we undertake, from large civil construction work, to specialised transport, road and bridge projects, to smaller and more technically niche projects. This is an extension of our continued growth in this region,” said Bede Noonan, ACCIONA’s Chief Executive Officer in Australia and New Zealand for the infrastructure business.
“We are uniquely placed to be able to offer our clients global expertise in executing large and complex projects, and a local management team with a demonstrated track record of delivering across the full range of project sizes. The incoming Lendlease Engineering team adds to our significant frontline local workforce that can be deployed on infrastructure projects across the region,” he added.
Over the last five months the combined businesses of ACCIONA and Lendlease Engineering have already successfully secured some significant wins that include Bayswater Station Alliance (WA), Kenwick Rail Freight Facility (WA), Bunbury Outer Ring Road Alliance (WA, preferred proponent), Brisbane Metro Alliance (QLD, preferred proponent), Rookwood Weir Alliance (QLD), Coombabah STP (QLD) and Prospect South to Macarthur Link (ProMac) Program (NSW).
“Our partnering approach and long-standing relationships with clients, joint venture partners and local sub-contractors, has enabled us to efficiently deliver infrastructure projects. Our strong track record of project development and co-investment combined with our recently expanded footprint positions us well to continue to partner with local and state governments to deliver infrastructure projects that create jobs.
“We look forward to pursuing many more exciting opportunities such as the North East link project in Victoria, a range of alliances in South Australia and West Australia, as well as a strong pipeline of tenders for in New South Wales this financial year, notably M6 –Stage 1 and Sydney Metro West,” Mr Noonan said.