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Carillion's facilities management contracts in line to be transferred to Canadian firm, BGIS

The deal, if it goes through, could see more than 2,500 Carillion employees become part of Brookfield Global Integrated Solutions
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Let that be a lesson to you ... the contracts cover the justice, transport, education, hospital and emergency services markets

Carillion’s former rivals continue to pick over its bones, with Canadian firm BGIS the latest to peck at the collapsed firm's carcass.

The Canadian company is negotiating with Carillion PLC’s (LON:CLLN) liquidators to take on the fallen construction and support services giant’s facilities management contracts.

If negotiations are successful, in excess of 2,500 Carillion employees could transfer over to Brookfield Global Integrated Solutions (BGIS).

The contracts cover the justice, transport, education, hospital and emergency services markets.

"This deal provides continuity of services for a large number of customers providing critical infrastructure within the UK market,” said Gord Hicks, the chief executive of BGIS.

“Our team is looking forward to engaging both customers and employees in the days ahead to effect the transaction and ensure a smooth transition,” Hicks added.

BGIS’s chief commercial officer Mark Marquis put in a quick plug for a company few in the UK have heard of, saying BGIS has a long-established track record of serving federal and regional government.

“With this transaction, we look forward to building a large presence in the UK facilities management market and providing customers with the same industry leading service and capabilities that we do throughout the globe,” he added.

READ: J Murphy & Son's buys Carillion's UK power framework business

Gail Cartmail, the assistant general secretary of the Unite union, told the BBC the union would look to meet immediately with BGIS to ensure that workers transfer over on contracts offering the same pay, terms and conditions.

The collapse of Carillion left the UK government scrabbling to find companies to take on public services that had been outsourced to private operators in the belief that they would do them more efficiently and more cost-effectively.

READ: Serco takes on Carillion's NHS contracts for £50mln and buys US radar business

British engineering and construction company J Murphy recently bought the UK power framework business of Carillion while outsourcing giant Serco Group PLC (LON:SRP) has also been, in the words of some observers, feasting on Carillion’s corpse.

For others, such as Galliford Try and Balfour Beatty, the fall-out from Carillion’s collapse has been less beneficial.

READ: Galliford Try slumps as it raises capital and reports profit drop after Carillion collapse

Galliford, Balfour and Carillion were working together on a new road in Aberdeen, while the latter two hade a couple of other ongoing projects as well; on Wednesday Galliford Try announced plans to raise £150mln as it had been obliged to increase its cash commitments to the joint venture on the Aberdonian project.

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June 28 2018
"This has been another successful year in which the group has achieved a 25% uplift in NAV, significant lettings successes across recently completed developments leading to a 21.49% increase in contracted rent and a strong performance across our key metrics," said the CEO, John Arnold.

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