Expansive German contractor Bilfinger Berger has added to its services business with the acquisition of a consultancy and engineering company, and has also secured a new joint venture agreement in the Russian power sector.
Dutch contractor Bam Group sold Tebodin to Bilfinger Berger for €145 million after announcing in November last year that it was reconsidering the position of Tebodin within its company.
Bam said the deal, which is expected to close in the second quarter, was in line with its strategic agenda to increase its focus on its core business activities and to strengthen its financial position.
Bam added that it expected to record a profit of €65 million on the back of the sale, which it said it would use to reduce group debt.
Headquartered in The Hague, The Netherlands, Tebodin reported revenues of €210 million in 2010 and has 3,200 employees spread over a network of offices throughout Europe as well as the Middle East, Asia and Africa.
Bilfinger Berger said the acquisition was part of its drive to expand its services business and strengthen its international activities. It said Tebodin would form the basis for the establishment of a new engineering and technologies subgroup within its industrial services division.
Roland Koch, chairman of the executive board at Bilfinger Berger, said, "The takeover of Tebodin is of major strategic importance. It takes our engineering services to a whole new level."
Meanwhile, Bilfinger Berger also announced that it had formed a joint venture with Russian power plant outfitter Tyazhmash. Bilfinger Berger holds a 51% stake in the new Bilfinger Babcock Tyazhmash.
In Russia, there are more than 600 coal powered steam generators currently in operation and Tyazhmash has a market share of over 90% in the manufacturing and maintenance of coal pulverisers, according to Bilfinger Berger.
News of the joint venture comes after information provider PMR forecast that investment in Russia's power sector would increase nearly 30% by 2020, with more than US$25 billion needed to be invested in the sector every year over the next two decades if demand is to be met.