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Lendlease (ASX:LLC) has confirmed it’s inked a deal with Consigil Construction to sell off its US-based East Coast construction (ECC) operations.
Just last month, the company sold off a US military housing business for close to $500M; part of a wider $4.5B plan announced earlier this year to sell off overseas assets and refocus on Australia.
To that end, the company also sold off assets in Asia and the UK earlier this year. Its US ECC operations are just the latest scalp in this push.
Notably, the company gave a range on what price it could fetch from Consigil for the sale – but also said the deal “is anticipated to be broadly neutral in terms of cash.”
“Under the terms of the transaction, Consigli will acquire substantially all current East Coast projects and the rights to secure projects where Lendlease is in a preferred position for an estimated consideration of $30 to $50m,” Lendlease wrote on Friday.
That consideration will include a profit share and earn out agreement while 400 Lendlease staff will be transitioned to Consigil – 90% of the company’s US construction workforce.
Lendlease see the deal going through by the end of CY2024.
“This transaction is another important step in simplifying Lendlease as we look to lower our risk profile and increase securityholder returns,” LLC CEO Tony Lombardo said.
LLC last traded at $6.64.
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