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Construction company Lendlease Group has confirmed terms with Consigli Construction for the sale of its US East Coast construction operations.
The deal, which is subject to customary due diligence and finalisation of documents, will see Consigli acquiring about 45 of Lendlease's ongoing, contracted, and preconstruction projects.
The majority of Lendlease’s US construction workforce is expected to transition to Consigli because of the sale.
As detailed during Lendlease's Strategy Update on 27 May 2024, this sale aligns with the company’s goal of divesting its construction operations in the US and UK within the next 18 months.
The decision is anticipated to lead to the impairment of related goodwill and deferred tax assets.
It is further expected to reduce Lendlease’s risk profile.
Lendlease CEO Tony Lombardo said: “Today’s announcement represents another step to simplify Lendlease to create a more focussed company for security holders. It’s the culmination of more than 12 months’ work refining our US construction activities to focus on the US East Coast where we have a clear competitive advantage.
“The sale represents a great outcome for both our people, the majority of whom will move across to Consigli, and for our customers.”
The specific terms of the contract are being kept confidential until the completion of the transaction, which is expected in the first half (H1) of financial year 2025.
Last year, Lendlease, in a joint venture with Birmingham City Council, proposed a plan for the £1.9bn ($2.41bn) revitalisation of the Smithfield Market site in Birmingham's city centre, UK.
The plan features 1.3 million square feet of retail and workspace, homes, and two public squares - a Festival Square and Market Square.
"Lendlease to sell US East Coast construction business to Consigli " was originally created and published by World Construction Network, a GlobalData owned brand.
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