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| Bilfinger focusing on industrial services The Executive Board of Bilfinger SE has decided to sell the Building and Facility business segment to EQT. The purchase price amounts to approximately €1.2 billion, which corresponds to an enterprise value of around €1.4 billion. The decision is the result of an intensive review of several purchase bids for the segment. The transaction remains subject to approval from the responsible authorities. The agreement comprises two purchase price components that are payable when EQT re-sells the company. On the one hand, Bilfinger and the acquiring company have agreed on a vendor claim agreement for a portion of the purchase price in the amount of €100 million with annual interest of 10 percent upon maturity. On the other hand, a further portion of the purchase price in the amount of approximately €200 million will be transformed into an instrument similar to an earn-out. This entitles Bilfinger to 49 percent of the resale proceeds from EQT. Bilfinger thus continues to participate in a proportionate amount in the development of the sold divisions. For Bilfinger, an expected capital gain at Group level of approximately €500 million remains. "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", says Chief Financial Officer Axel Salzmann. "At the same time, Building and Facility gets a growth-oriented investor with proven expertise in the services sector." With ISS, for example, EQT grew the company 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 extensive experience with acquisitions and the successful further development of subsidiaries of DAX companies such as Daimler, Siemens and E.ON. This strategic and financial competence will help the Building and Facility divisions to continue their growth path. Among other things, the European platform will be expanded and positions in areas such as digitalization and energy efficiency will be strengthened. write your comments about the article :: © 2016 Construction News :: home page |