YIT expands building system service business
By Chris Sleight02 June 2008
YIT has agreed to buy MCE's € 355 per year building system service businesses in Austria, the Czech Republic, Germany, Hungary, Poland and Romania. The deal is valued € 55 million, but the businesses' net debt will be deducted from this to arrive at the amount of cash YIT will pay.
According to YIT the businesses employ 1900 people in total and comprise a range of maintenance and operational activities in the field of building systems. Some 40% of the company's revenues are generated in Germany, with a similar amount coming from Austria.
YIT says the acquisition will expand its own building system services business, giving it a foothold in six new countries. The acquired businesses will form a new division within YIT's Building Systems division. It will be headed by Walter Schuster, who is the current head of MCE's Building Technology Division.
The acquisition is subject to approval by competition authorities and is expected to close by the end of July. YIT says the acquisition will not change its profits outlook for this year.