Balfour Beatty Rail has sold off its rail plant rental arm to Vp plc.
Vp has acquired Balfour Beatty’s small tools trackside plant and equipment (TP&E) business and assets for £5.5 million, including a five-year framework agreement to supply plant equipment to Balfour Beatty Rail in the UK.
The TP&E activities will be integrated into Vp subsidiary Torrent Trackside.
Jeremy Pilkington, chairman of Vp, said: “This transaction further strengths our business relationship with the Balfour Beatty Group and at the same time positions Torrent Trackside as the leading supplier of specialist portable rail equipment and associated services to the UK rail sector.”
Last week, Balfour Beatty and Carillion confirmed that they were in talks over a potential merger valued in excess of £3 billion.
Balfour Beatty’s managing director, Mark Bullock, said in a statement: “Following a strategic review of the way in which Balfour Beatty Rail procures its small tools, plant and equipment, a decision was taken to sell the TP&E business. We remain very much committed to UK rail plant market and will continue to provide our customers with a complete range of high quality track geometry, road rail and specialist rail plant services.
“We look forward to working with Torrent Trackside as a strong supply chain partner for all our trackside plant and equipment hire requirements.”