Cofely, part of the giant French GDF Suez utilities group, has this week completed the purchase of Lend Lease Facilities Management (LLFM).
Last year Cofely bought Balfour Beatty Workspace for £190m.
The price paid for LLFM was not disclosed. Cofely said only that it provided it with a guaranteed revenue stream of £2.5bn over the next 25 years as it built up one of the UK’s largest portfolios of private finance initiative (PFI) service contracts.
The transaction will also give Cofely a significant, new lifecycle management capability to its business, which includes building fabric and major repair & replacement, it said.
LLFM currently provides a range of FM services across the UK and Ireland, with particular focus on healthcare, education, government and retail. The business has a number of large long-term contracts with clients comprising a number of major National Health Service (NHS) Trust hospitals at locations including 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 under the Cofely brand.
GDF Suez executive vice president Jérôme Tolot 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”.
Cofely has a turnover of £1bn in the UK and Republic of Ireland, and employs more than 15,000 people