June 3 New York-based private equity firm
Clayton Dubilier & Rice is considering buying and merging the
office maintenance units of Balfour Beatty's and
Rentokil Initial's, the Financial Times reported on
Rentokil and CD&R are already holding talks on the plan, the
financial daily reported, citing four people familiar with the
The people told the FT that Rentokil's unit could be worth
as much as 400 million pounds ($611.88 million) while Balfour
Beatty's WorkPlace facilities management business could go for
about 200 million pounds.
Facilities management company Rentokil said in March that it
would consider selling its low-margin UK-focused facilities
management arm if someone made an offer, allowing it to build up
its international businesses.
That same month, Balfour Beatty - which recently warned that
its 2013 profit would be significantly below its expectations -
said it had not concluded the review of the WorkPlace business,
which maintains parts of London's Olympic Park.
But the company did say that someone else may be better
placed to invest in the business.
CD&R was not immediately available for comment. Balfour
Beatty and Rentokil Initial declined to comment.