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The US private equity firm that owns cladding contractor Permasteelisa is set to buy Lendlease鈥檚 UK construction business, the company has said.

In an announcement made overnight on the Sydney stock exchange, Lendlease said: 鈥淟endlease and Atlas Holdings today (1 January) announced they have entered into a binding agreement for the sale of Lendlease鈥檚 UK Construction business.

鈥淐ompletion of the transaction is subject to conditions precedent including regulatory approvals, with completion targeted before the end of the Australian financial year in June 2025. Key contract terms remain commercial in confidence until completion of the deal.鈥�

The deal will see Atlas, which bought Permasteelisa in 2020, acquire Lendlease鈥檚 construction business and its operations including existing employees and leadership team.

Atlas will pay 拢35m for the business, 拢10m of which will be deferred until June next year. It added: 鈥淭he profit outcome is expected to be broadly neutral after providing for retained risks in relation to projects that have completed or substantially completed prior to exchange of the sale agreement.鈥�

Lendlease group chief executive Tony Lombardo said: 鈥淭his transaction builds on our progress to simplify Lendlease as we look to lower our risk profile and increase securityholder returns.鈥�

Peter Bacon, Atlas operating partner, said: 鈥淲e are excited to acquire one of the UK鈥檚 leading construction companies, which has a long track record of successfully delivering large complex projects for both private and public sector clients. We look forward to working with [UK managing director] David Cadiot and his team continuing to build the business.鈥�

>> See also: The industry needs Lendlease to stick around because Mace and Multiplex can鈥檛 build everything

>> See also: 鈥楾he contracting model needs to change鈥� 鈥� Permasteelisa鈥檚 boss on why the industry can鈥檛 go on like this

The news will bring to an end Lendlease鈥檚 25 year ownership of the business which saw it pay 拢285m for the then Bovis Construction in 1999.

Lendlease put the business up for sale in May last year after its Australian parent decided to concentrate on its home market.

In its last set of results filed at Companies House, Lendlease鈥檚 pre-tax profit slipped a third to 拢11.9m in the year to June 2023 on turnover down 8% to 拢509m. It said the fall in income was due to bidding less schemes over the covid-19 period but added that at its year-end it had 拢2.3bn of work at the preferred bidder stage.

Atlas, which was set up in 2002 and is based in Greenwich, Connecticut, has 26 companies in its roster which generate $16bn (拢13bn) in annual revenues.

Its businesses include those working in metals, wire and cable, automotive supply, building materials, construction, power generation, food production, industrial machinery and services, packaging, printing, pulp, paper and tissue.

Lendlease鈥檚 ongoing jobs include a mixed-use scheme at 334 Oxford Street, the former flagship of Debenhams, a job to build a new stand at Crystal Palace鈥檚 Selhurst Park ground and the Google headquarters building at King鈥檚 Cross. It is also one of two firms bidding a huge tower scheme at 18 Blackfriars in London.