EQT acquires Building and Facility business segment from Bilfinger
Munich, June 2, 2016 – EQT VII today signed an agreement with Bilfinger SE (“Bilfinger”) to acquire Bilfinger’s business segment Building and Facility subject to the receipt of customary regulatory approvals. The purchase price corresponds to an enterprise value of EUR 1.4 billion. It comprises a cash component and a deferred purchase price component with annual interest upon maturity. As part of the agreement, Bilfinger has secured a share in the future exit proceeds of EQT from Building and Facility through an instrument similar to an earn-out. Building and Facility is the biggest real-estate service provider in the DACH region and also a leading player in the segment in the UK. It includes three divisions: Facility Services, Real Estate, and Building, and employs more than 20,000 people. The annual output volume generated amounts to around EUR 2.5 billion.
Realizing growth potential, assume No. 1 position in Europe
Building and Facility is set to continue to grow profitably with EQT VII as new owner. The European real-estate services sector is a promising market, which is set to benefit from the growth rate of outsourced real-estate services. Building and Facility is already the No.1 integrated Real Estate service provider in the DACH region and has strong market positions in the UK, Italy, the Netherlands, Poland and Turkey. Focus going forward lies on further developing the integrated services offering across its growing European platform.
“The plan is to expand Building and Facility’s already strong platform by organic growth as well as via acquisitions and to grow stronger than the market in Europe. The intention is to create a European leader in the real-estate services sector and EQT will invest in the company accordingly,” said Dr Andreas Aschenbrenner, Partner at EQT Partners, and Investment Advisor to EQT VII. “To achieve this, we look forward to working together with the experienced and successful management of all the three divisions,” he adds.
A proven track record
EQT VII draws on comprehensive expertise and competence in facility services. Since 1994, EQT has invested in 19 companies within the services sector. For example ISS, a Danish facility services company became the world’s leading facility services provider with more than 500,000 employees in less than 10 years during EQT’s ownership.
“EQT always applies a long-term oriented, responsible and sustainable participation approach and relies on a consequent industrial logic. The new company will benefit from this growth focused investment philosophy as well as our sector expertise,” explained Marcus Brennecke, Partner at EQT Partners, and Investment Advisor to EQT VII.
Brunswick Group, Advisor to EQT VII
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EQT is a leading global private equity group with approximately EUR 29 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
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