Colas acquires Spie rail businesses
15 April 2008
Colas, the roadbuilding contractor which is 96,4% owned by Bouygues, has signed agreements to acquire Spie's French and UK railway construction businesses. The acquisitions will add about € 630 million to Colas' annual revenues.
In a complicated deal, it has committed to buy Spie Rail, the € 400 million per year French business from private equity company PAI Partners. PAI Partners acquired the Spie group from Amec last year, and the rail business represents about 15% of Spie's € 2,6 billion per year sales (2005 figures).
In a connected deal, Colas has also agreed to fully acquire Amec Spie Rail Systems, which was 50% held by Spie Rail, with the remaining 50% still held by Amec. This UK rail contractor had sales of UK£ 156 million (€ 230 million) last year.
The value of the transactions was not disclosed. The deals are expected to reach financial close in April, subject to regulatory approval.
The disposal by Amec is part of a plan to restructure the company to focus on the oil, gas, nuclear and wind-energy sectors. The next stage of this is expected to be the sale of its contracting business, which has sales of UK£ 1,3 billion (€ 1,95 billion) per year.