Developer Lend Lease today announced it has entered into an agreement with Bilfinger Berger SE to acquire 100 per cent of Valemus Australia, the parent company of Abigroup, Baulderstone and Conneq, for A$960 million.

The Valemus businesses are leading providers of services in the engineering, construction, residential and non residential building, and engineering services markets in Australia.

"The acquisition of Valemus will increase Lend Lease's capabilities and activities in the engineering and construction market and diversify Lend Lease's position in this sector," the company said in a statement on Tuesday.

It will be funded from existing Lend Lease cash reserves and a new five year A$225 million debt facility.

The purchase is expected to provide EPS accretion to Lend Lease of circa 15 per cent on a full year basis in the first full financial year ending June 30, 2012, the group said.

The transaction remains subject to regulatory approval and other conditions and is expected to be completed in the first quarter of calendar 2011.

A further payment of A$80 million plus A$5 million per month from October 1, 2010 to completion will be made in lieu of 2010 profits not distributed. Lend Lease will be entitled to all profits from January 1, 2010 onwards.

Lend Lease chief executive officer and managing director Steve McCann said buying Valemus provides the group with an excellent strategic platform in the engineering and construction market in Australia.

"Valemus has in excess of A$5 billion in total secured revenue with an extensive pipeline of further opportunities and a high proportion of Government customers," he said.

"Our integrated business model, enhanced through the additional capabilities delivered by Valemus, provides the depth of skills and resources required to successfully execute on our strategy."