Shares in Lend Lease have jumped after the company announced it had tied up its $960 million acquisition of Valemus Australia, the parent company of Abigroup, Baulderstone and Conneq.
Lend Lease shares were up 4.6 per cent to $8.64 in mid-day trade.
The $960 million is significantly less than Valemus had hoped to raise in its aborted attempt to float the comapny earlier this year, abandonded due to lingering European debt doubts.
Mining and construction service provider Valemus is owned by German entity Bilfinger Berger SE.
The acquisition will increase Lend Lease's capabilities and activities in the engineering and construction market and diversify its position, the company said.
Opportunities for expansion include in road and rail infrastructure and government contracts.
Lend Lease chief executive and managing director Steve McCann said the acquisition of Valemus provides the company with an excellent strategic platform in its Australian market.
"Valemus has a highly successful and experienced management team with diverse sector expertise that will add to the depth of our Australian management and broaden our skill set in the construction sector," Mr McCann said,
"Valemus has in excess of $5 billion in total secured revenue with an extensive pipeline of further opportunities and a high proportion of Government customers.
"The group's strong balance sheet, diversified portfolio and significant project pipeline provide a strong platform for earnings growth."
