19 December 2019
ACCIONA has entered into an agreement with Lendlease to acquire the ongoing business of Lendlease engineering. The agreement comprises eight key projects:
- Southern Program Alliance (Victoria). A level crossing removal project. In JV with ACCIONA.
- Southern Program Alliance AWP1 (Victoria). Additional work. In JV with ACCIONA.
- Ballarat Line Upgrade (Victoria). Railway upgrade. In JV with ACCIONA.
- WestConnex 3A (NSW). Two 7.5 km-long twin motorway tunnels.
- Western Sydney International Airport (NSW). Major bulk earthworks package.
- Pacific Highway W2B (NSW). Road section upgrade.
- Galwer Rail (S. Australia). Electrification project.
- The Northern Road Upgrade (NSW). Road Section upgrade.
Under the terms of the agreement, the NorthConnex and Kingsford Smith Drive projects, both in their final stages, and Melbourne Metro will not be included in the perimeter and will remain with Lendlease.
The transaction, valued at AU$180 million, includes a substantial fleet of plant and equipment as well as the project-related workforce and Lendlease Engineering’s business development teams.
The consolidated capability and additional construction pipeline will reinforce ACCIONA’s position as a leading Australian constructor and allow it to accelerate the pace of growth of its infrastructure business in a dynamic market worth AU$30 billion a year. Australia is one of ACCIONA’s strategic markets for its infrastructure and renewable energy business.
The integration of the new projects will result in ACCIONA achieving annual construction revenues in Australia in excess of AU$2 billion in near term, growing towards AU$3.0-3.5 billion in the medium term, anticipating ACCIONA’s growth targets for the country.
The agreement is expected to become effective in the first half of 2020 subject to regulatory approvals and client and third party consents.
The integration reinforces ACCIONA’s excellence in engineering and construction in Australia and will complement the company’s solid credentials in roads, rail systems, ports, water and energy infrastructure in the country, resulting in a broader range of projects across the country.
Bede Noonan, ACCIONA’s Managing Director for Infrastructure Australia and New Zealand, will continue to head the business as CEO of the enlarged unit. ‘
“The agreement will bring together a strong domestic team with truly global experience at a time when demonstrated capability and bench strength to deliver on Australia’s significant infrastructure pipeline is at a premium,” said Bede Noonan. “The range and scale of projects in this market is growing and companies with strong domestic capability and expertise are needed to meet the challenge.”
“Our business is wholly reliant on people and we look forward to integrating this highly experienced team. Our shared corporate values will ensure that we remain a company focused on environmental and social sustainability, caring for our people and focusing on our customer needs,” he added.