May 13, 2014 / 1:20 PM / in 4 years

UPDATE 2-Bilfinger offers to buy UK real estate consultant GVA Grimley

* Bilfinger is trying to cut dependence on construction

* Sources say deal values GVA at 150 mln stg

* Parties agree not to disclose terms of offer

* Bilfinger says GVA is highly profitable

* Offer to run for four weeks (Adds details on GVA valuation)

By Marilyn Gerlach

FRANKFURT/LONDON, May 13 (Reuters) - German engineering and services company Bilfinger has offered to buy privately owned British commercial property consultant GVA Grimley Holdings, in a deal which sources said valued the firm at about 150 million pounds ($253 million).

Bilfinger has been on buying spree since 2011, spending about 800 million euros acquiring about two dozen companies as it reduces its dependence on the construction market, which can be vulnerable to hefty economic swings and price wars.

It said on Tuesday it had submitted an offer to the nearly 300 shareholders of GVA Grimley and both parties have agreed to keep the terms confidential. The offer runs for four weeks.

Sources familiar with the deal said the terms valued GVA at about 150 million pounds. GVA generated a turnover of 147.3 million pounds in the year to the end of April, up from 140.4 million pounds on the previous year.

Bilfinger’s acquisitions include UK facility services company Europa, automation technology specialist GreyLogix and power plant control systems specialist Helmut Mauell.

The company said last week it planned to sell significant parts of its construction business.

The German firm said GVA was “highly profitable”, has 1,500 employees and aims for sales of around 190 million euros in the current year.

GVA said the deal would help the British brokerage compete globally with the world’s biggest real estate advisers, which include Jones Lang LaSalle and CBRE, for mandates.

The acquisition of GVA will more than double sales at Bilfinger’s real estate division from the current level of around 160 million euros ($219 million), Bilfinger said.

$1 = 0.5939 British Pounds; $1 = 0.7296 Euros Additional reporting by Brenda Goh; Editing by Erica Billingham and Pravin Char

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