Fayat Group to buy Bomag

The fayat group has agreed to buy bomag from SPX Corporation for US$ 446 million (€343 million) in cash. The transaction is expected to reach financial close before the end of 2004.

Bomag, based in Boppard, Germany is the world's largest manufacturer of compaction equipment, with sales this year expected to hit €400 million. It has seven overseas sales subsidiaries, in Austria, France, the UK, US, Italy, Canada and Japan, and four factories-two in the US and one each in Germany and China.

Bomag became part of SPX, a diversified US company with annual sales in excess of US$ 5 billion, when SPX acquired Bomag's long-time owner United Dominion in May 2001.

The Fayat Group is a privately owned French business comprised of more than 75 companies, with annual sales totalling €1,2 billion (US$ 1,57 billion last year). It includes Italian asphalt batching and paving equipment manufacturer Marini, which claims to be no.1 in Europe and no.3 in the world for asphalt plants, and no.3 in Europe in the paver sector. The Fayat Group's existing road building equipment businesses have annual sales of about €200 million. As well as making equipment, the Fayat Group owns businesses active in the road building, building and earthworks contracting sectors.