BAM sells BAM Deutschland to Zech Group and Gustav Zech Foundation
Royal BAM Group nv has reached agreement to sell the shares of its German operating company BAM Deutschland (including subsidiaries BAM Immobilien-Dienstleistungen and BAM Sports) to Zech Group SE and Gustav Zech Foundation.
The transaction, which is subject to approval of the competition authorities, is expected to close in October. Financial details of the transaction are not being disclosed.
The divestment of BAM Deutschland will support BAM’s capital ratio by shortening of the balance sheet, and will reduce liquidity and the use of bonding. The transaction will have limited impact on the 2021 income statement, and will not change BAM’s outlook for 2021.
Based in Stuttgart, BAM Deutschland is a leading company in the German turn-key construction market, as well as in facilities management, with annual revenues of circa €500 million and 750 employees delivering projects including hospitals, offices, universities, prisons, residential buildings and sport stadiums. Current projects include an office building in Berlin, a prison in Willich-Anrath (North Rhine-Westphalia), Westfield Hamburg-Überseequartier, (apartments, retail and offices), university medical centre UKSH in Kiel and Lübeck, and the BBBank Wildpark Stadium in Karlsruhe.
Ruud Joosten, CEO Royal BAM Group, said: ‘This transaction is a major step forward in delivering our strategy Building a sustainable tomorrow. BAM is focusing on growth markets in the Netherlands, United Kingdom and Ireland, where we have scale and competitive advantage. In other markets we are managing our subsidiaries for value and potential divestment. With Zech Group and Gustav Zech Foundation as the new shareholder, we have found a trusted partner and paved the way for the successful future of the company and its employees.’
Olaf Demuth, member of the board of Zech Group SE, explained: ‘The employees and their associated know-how as well as the projects of BAM Deutschland perfectly complement our existing service portfolio. With this transaction, we are pleased to be able to further expand our Building business unit with a high level of competence. In addition, another important step is to solidify our market-leading construction activities.’