Bilfinger Berger is taking another important step in the expansion of its industrial services with the acquisition of the Babcock Borsig Service Group from Deutsche Beteiligungs AG.
This acquisition will significantly expand the Bilfinger Berger´s portfolio of industrial services for power plants, giving it an excellent position in this growth market. Both parties to the transaction have agreed not to disclose any price details.
Babcock Borsig Service has a sound balance-sheet structure without any financial debts and a high and constant level of net cash. This very profitable group will make a positive contribution to Bilfinger Berger´s earnings right from the start. The acquisition is subject to the approval of the antitrust authorities.
Market leader in lifecycle services for power plants
The newly acquired company is one of the market leaders for lifecycle services for fossil-fuel power plants. Its broad range of services includes the long-term rehabilitation, maintenance and spare-parts business, as well as the modernization, efficiency enhancement and lifetime extension of existing plants. Babcock Borsig Service´s close customer relations are a result of its permanent presence at their sites. In its latest financial year, with a workforce of 2,700 employees the company generated an output volume of â¬350 million, which will continue rising to â¬400 million. More than half of its output volume is achieved in the international business. The company´s main areas of activity outside Germany are in Eastern Europe, the Middle East and South Africa.
Babcock Borsig Service has tremendous development prospects, because with the rising need for energy, demand for the repair and maintenance of power plants will grow continuously.
Ideal supplement to existing services business
'For Bilfinger Berger, this new involvement in power-plant services is an ideal supplement to our existing services activities. This acquisition will strengthen our position in the Middle East and expand our presence to the South African market,' stated Herbert Bodner, Chairman of Bilfinger Berger´s Executive Board. 'The services business is a second major pillar of Bilfinger Berger´s business in addition to our construction activities, and will continue to gain importance in the future. With their good and stable margins, services improve our earnings structure and strengthen our profitability.'
Source: Bilfinger Berger
