Royal BAM Group has signed an agreement to sell shares of its German operating company Wayss & Freytag Ingenieurbau to ZECH Building.
The transaction is anticipated to close in the third quarter this year, subject to approval by the competition authorities.
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Following the deal, all construction activities of the Zech Group will be bundled.
The deal will lead to a book profit of around $50.42m (€50m).
Besides shortening the balance sheet, this transaction will decrease liquidity and the use of bonding.
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Based in Frankfurt am Main, Wayss & Freytag Ingenieurbau has presence in the German civil engineering market and international tunnel construction segment.
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By GlobalDataThrough a joint venture, Wayss & Freytag Ingenieurbau is involved in the construction of the Femern Belt tunnel that will connect Germany and Denmark.
Wayss & Freytag Ingenieurbau has an annual revenue of over €500m, and employs about 1,000 people.
Royal BAM Group CEO Ruud Joosten said: ‘We are pleased that with ZECH Building as the new shareholder for Wayss & Freytag Ingenieurbau, we have found a reliable partner to continue the further successful future of the company and its employees. Zech Group also acquired the activities of BAM Deutschland in the autumn of 2021.
“We consider the current transaction as a major step in the portfolio adjustment of our Group, based on our strategy Building a sustainable tomorrow. BAM focuses on growth markets in the Netherlands, the United Kingdom and Ireland, where we have scale and competitive advantage.’
Meanwhile, in a separate development, the UK Department for Education has appointed BAM through a high value framework to redevelop Fred Longworth High School in Tyldesley, Wigan, Greater Manchester.
Under this £24m contract, BAM will build a three-storey teaching block, which will be handed over in September 2023.
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Image: Wayss & Freytag Ingenieurbau has presence in the German civil engineering market and international tunnel construction segment. Credit: Maike und Björn. Bröskamp from Pixabay.
