Following the purchase interest announcement of Bilfinger’s building and facility division earlier this year, the executive board of the international construction and services group has announced the segments which include Bilfinger Europa will be sold to Swedish private equity firm, EQT Partners.
The decision is the result of an intensive review of several purchase bids for the division, equating to just under half of Bilfinger’s entire business. The sale was approved and signed yesterday (2 June 2016) for a purchase price amounting to approximately €1.2 billion, which corresponds to an enterprise value of around €1.4 billion.
Axel Salzmann, chief financial officer, said:
“The sale of the segment generates the greatest value for Bilfinger and opens up new perspectives. With additional liquidity, we will expand our position as market leader for industrial services in the process industry through targeted acquisitions and investments in the future. In this regard, we are focusing on our technology and service competences, which are greatly appreciated by our customers. At the same time, building and facility gets a growth-oriented investor with proven expertise in the services sector.”
EQT has grown ISS into “one of the world’s largest facility managers within a period of ten years” and successfully went public in 2014.
In addition, EQT has also had extensive experience with acquisitions and the successful further development of subsidiaries of DAX companies such as Daimler, Siemens and E.ON.
It is this strategic and financial competence that Bilfinger says will “help the building and facility divisions to continue along their growth path”.
Pinder Singh Hujan, executive chairman at Bilfinger Europa, the facilities management division of the business in the UK commented:
“With this new investment buy-out confirmed, this opens the opportunity for the building, facility and real estate division to pioneer new developments across the businesses. This is an exciting opportunity for Bilfinger Europa and our subsidiary companies and we look forward to driving this new chapter.”
The agreement comprises two purchase price components that are payable when EQT re-sells the company, entitling Bilfinger to 49 per cent of the resale proceeds from EQT. As such, Bilfinger will continue to be involved in a proportionate amount in the development of the building and facility services divisions.
The transaction remains subject to approval from the responsible authorities.
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