Feb 20 2008
Bilfinger Berger Industrial Services AG (BIS) has acquired Hydro Production Partner (HPP) and Hydro Production Services (PT). The sales agreement was signed in Porsgrunn on Monday evening.
The two companies employ roughly 2,200 people (including contractual staff) within the areas of industrial maintenance, projects and service in Norway, Sweden and Germany. The sales price for the two companies’ entire share capital is approximately NOK 800 million, which gives Hydro an accounting gain of approximately NOK 600 million when the transaction is completed.
BIS is a leading international company in maintenance and service operations for the process industry. BIS is a subsidiary of the Bilfinger Berger group, which has its HQ in Munich, Germany. The company employs about 15,000 people and had a turnover of EUR 1.3 billion in 2006.
The sale comprises HPP’s and PT's Norwegian operations in Grenland, Rjukan, Karmøy, Høyanger, Årdal, Sunndal and Glomfjord, as well as Stenungsund in Sweden and Neuss in Germany. The sale will result in the continuation of HPP’s and PT’s activities with an owner whose core business comprises these activities. Hydro will retain 15 percent of the shares in HPP and PT until the end of 2009. The shares will then be sold to BIS at the agreed price, plus a premium reflecting the companies' earnings for the period.
HPP and PT had a turnover in 2007 of approximately NOK 2 billion, following solid growth in 2006. Roughly two-thirds of this turnover is derived from long-term contracts and the biggest customers are found in process industries and energy production. HPP and PT have a total order reserve of about NOK 3.6 billion.
The transfer can formally take place when the approval of the competition authorities in the countries in question has been obtained, and the outstanding formalities between the parties settled.
“The agreement supports Hydro’s strategy of focusing on the production and manufacture of aluminium. An important concern of ours has been to see that the HPP and PT employees’ jobs are secured and that their expertise continues to be utilized in a company with a long-term commitment to industrial maintenance, projects and service,” comments Executive Vice President John O. Ottestad in Hydro.
“Its expertise and size makes Bilfinger Industrial Services a good owner. We are also confident of further development and growth. This sale is in accordance with our previously announced plans, and all existing contracts will continue,” states HPP’s Managing Director, Morten Mathisen.
“With this important acquisition Bilfinger Berger Industrial Services AG intensifies its growth in Norway and Scandinavia. The services offered by the Hydro companies extend our product spectrum in an ideal way, enabling us to offer a complete range of industrial services in Scandinavia,” comments Chief Executive Officer Thomas Töpfer of Bilfinger Berger Industrial Services AG.