Balfour Beatty, a global infrastructure group and Royal Mail Group declared that their partnership venture Romec has extended a facilities management accord for a period of 10 years with Royal Mail Group.
The Romec partnership was formed by Royal Mail Group and Balfour Beatty in 2002 with a 51%-49% ownership deal respectively. Romec offers a range of building and technical services such as plumbing, electrical, cleaning and security services to the Post Office, Royal Mail and Parcelforce Worldwide buildings. Romec generates around £150m as revenue every year.
Under the clauses of the new accord, Balfour Beatty will take over Romec’s external trading business known as Romec Services, which offers mobile maintenance and engineering services for external clients such as Camelot, BBC, Asda, British Museum and Sainsbury. Romec Services has gross assets worth £13m and earns around £36m as revenue from its facilities management services. The acquiring of Romec Services will enrich Balfour Beatty with a competent technical services business along with a nationwide presence and will enable Balfour Beatty to attend to its clients efficiently and to sustain its business growth plans.
The service accord that has come into force from April 2011 will provide £0.9bn worth services to the Royal Mail Group with possibility for future work worth about £0.9bn in a period of 10 years.
Source: http://www.balfourbeatty.com/