Lendlease Corporation has entered into a binding agreement with US construction firm Consigli Construction to sell its US East Coast construction operations.
Under the agreement, Consigli will acquire nearly all current East Coast projects and rights to future projects where Lendlease is in a preferred position, for an estimated sum of $30 to $50 million.
The consideration includes a profit share and earn-out arrangement, payable two years post-completion of the transaction.
More than 400 employees, representing about 90% of Lendlease's US construction workforce, are expected to transition to Consigli upon completion.
The sale is anticipated to be broadly neutral with regards to cash, capital, and profit over the two-year period.
"This transaction is another important step in simplifying Lendlease as we look to lower our risk profile and increase securityholder returns," said Lendlease Group CEO Tony Lombardo.
"It's a positive outcome, both for our US construction team and for our valued customers, and continues to demonstrate focused execution of our strategy," Lombardo supplied.
The transaction awaits conditions precedent, including third-party consents, with completion targeted by the end of the first half of FY25 and final settlement two years thereafter.
Lendlease will retain liabilities for the business, including already delivered projects, and will manage this risk over time.
At the time of reporting, Lendlease’s share price was $6.61.