The facilities management arm of French energy giant GDF Suez has boosted its business in the with a significant acquisition.
Cofely, which recently snatched the contract to run the energy plant at the massive Sullom Voe gas terminal for BP, has acquired the UK facilities management (FM) business of Lend Lease for an indisclosed sum.
The contracts will provide the firm with a guaranteed £2.5billion income stream over the next 25 years.
The deal makes Cofely one of the UK’s largest providers of technical services PFI (Private Finance Initiative) and provides an increased portfolio of long-term FM contracts in key public sector and healthcare markets, the company said.
Lend Lease is one of Australia’s largest property and infrastructure groups with a turnover of £6.7billion in 2013 and over 16,500 employees worldwide. It’s UK Fm business (LLFM) has a number of long-term contracts with National Health Service (NHS) Trust hospitals in 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, the firm said.
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 and our credentials as a leading UK service provider.
“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 £190million purchase of Balfour Beatty WorkPlace in late 2013.
Cofely said in December it planned to buy several smaller rivals with combined revenue of £800million to drive home its advantage as Europe’s biggest provider of energy services for buildings.
German industrial services company Bilfinger, one of Cofely’s main competitors, is also on an acquisition drive in this industry and said earlier this month it has £516million available to fund acquisitions until end-2015.