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Carillion acquires Alfred McAlpine

10 December 2007

The Boards of Carillion and Alfred McAlpine announced that agreement had been reached in mid December on the terms of a recommended proposal whereby Carillion will acquire Alfred McAlpine.

The recommended shares and cash Acquisition values each Alfred McAlpine Share at 558p, and values Alfred McAlpine's existing issued ordinary share capital at approximately £572m

The acquisition will create one of the UK's largest support services and construction companies with an aggregate revenue of approximately £4.7 billion. It combines two companies with an excellent strategic fit to create a leading support services group serving both public and private sector customers and complementary skills of Carillion and Alfred McAlpine in private finance, design, construction, maintenance and support services.

Alfred McAlpine's construction business will fit with Carillion's skills and resources. The businesses will together continue to target higher margin projects, and enhance management resources, particularly the number of people available with the skills required to support Carillion's major growth opportunities in the Middle East.

The acquisition is expected to achieve an annual running rate of cost savings of £30 million by the end of 2009 (the first full year after completion of the Acquisition) and to deliver materially enhanced earnings in that year.

Commenting on the Acquisition, Philip Rogerson, Chairman of Carillion said: "The acquisition of Alfred McAlpine represents a further step in Carillion's development and its successful strategy for sustainable and profitable growth. There is an excellent strategic fit between the two companies and the combined group will be one of the UK's leading support services businesses with enhanced capabilities in providing integrated solutions and construction services. We are confident this transaction can deliver significant value for the shareholders of the Enlarged Group."

Commenting on the Acquisition, Roger Urwin, Chairman of Alfred McAlpine said: "Over the past five years we have repositioned Alfred McAlpine into a valuable support services group, with leading positions in a number of growth markets. Carillion's offer recognises this value and gives our shareholders, employees and customers the opportunity to share in the future success of the Enlarged Group."


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