More than 9,000 Balfour Beatty employees will transfer to the French energy giant.
The deal is expected to complete before the end of the year. When debt transfer is taken into account, net cash inflow to Balfour Beatty will be approximately £150m. Balfour Beatty plans to use the money to strengthen its balance sheet, reducing borrowings and interest payments, and to refocus on infrastructure.
CEO Andrew McNaughton said: "The sale of the UK FM business represents an important step in our evolution as we intensify our focus on infrastructure. In addition to finding a good new home for the business, its customers and employees, this transaction has achieved good value and will enable us to allocate more resource to target growth sectors and markets in the future."
Operating as Balfour Beatty WorkPlace, the business being sold has a number of major contracts in the UK with clients including the Department for Work & Pensions, HM Revenue & Customs and North East Lincolnshire Council as well as the Romec joint venture with the Royal Mail Group, which provides a wide range of technical and building services to Royal Mail, Post Office and Parcelforce Worldwide.
Under GDF Suez ownership, Workplace is expected to continue to provide FM services to Balfour Beatty's PFI contracts.
Balfour Beatty’s UK facilities management business generated £482m of revenue in 2012 with operating profit of £21m. Gross assets at 31 December 2012 were £197m.
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