Lendlease has announced it will sell its Lendlease Services Business to engineering company Service Stream.
The $310 million sale is expected to be complete by the end of the calendar year.
Lendlease Global CEO Tony Lombardo, who assumed the position earlier this year following Steve McCann’s sale of the engineering arm, said the sale will allow the company to better focus on its development and construction pipeline.
“The divestment of the Services business, along with other recent divestments including the sale of the Engineering business and the US Telecommunications and Energy businesses, aligns with the Group strategy to be more focused on the areas where our competitive edge is the strongest,” he said.
“The divestments, combined with recently announced changes to the organisational structure, better position the Group to deliver on our $110 billion development pipeline, continue to deliver our construction backlog and grow our Investments platform in a more focused and efficient way.”
Service Stream is an Australian-listed company that specialises in design, construction, operation and maintenance of utility and telecommunications networks.
Lendlease Services Managing Director, Toby Matthews, said “the sale of the business is a great outcome for both our customers and people.
Service Stream is a leader in the sector, and our skilled workforce, customer relationships and extensive workbook will significantly expand its operations across Australia.”
Service Stream Managing Director, Leigh Mackender, said “the combination of our two businesses will create a diverse, multi-network essential service provider, operating across the growing infrastructure services sector.
We look forward to welcoming the Lendlease Services team as we collectively expand our service offerings, broaden the scale and depth of our operations and continue to support our valued customers.”
The decision to sell Lendlease’s services and engineering businesses came as a result of major cost blowouts in 2019, largely attributable to the Melbourne Metro Tunnel project.
Lendlease Engineering was sold to Spanish Acciona last year.
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