The move is part of its strategy to focus on the Netherlands, UK and Ireland.
The transaction is subject to approval by the competition authorities and is expected to be completed in the third quarter.
Wayss & Freytag Ingenieurbau is based in Frankfurt am Main and has a leading position in the German civil engineering market and in international tunnel construction. Its annual revenue is more than €500 million. The company has 1,000 employees.
Among its current contracts is involvement in the construction of the Femern Belt Tunnel, which will link Germany and Denmark. Other joint venture projects include the western part of a new 7km rail tunnel linking Munich's main station with the eastern hub, the A10/A24 highway extension near Berlin (PPP) and the construction of a new rail maintenance facility for Deutsche Bahn in Cottbus.
The divestment of Wayss & Freytag Ingenieurbau will result in a book profit of approximately €50m. This amount was not taken into account in the earlier outlook it provided for 2022, which was an improvement of the adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin compared to 2021 said Bam. In addition, the transaction will shorten the balance sheet and will reduce liquidity and the use of bonding. The capital ratio will further improve by approximately 2%.
Ruud Joosten, CEO Royal Bam Group, says: ‘We are pleased that with Zech Building as the new shareholder for Wayss & Freytag Ingenieurbau, we have found a reliable partner to continue the further successful future of the company and its employees. Zech Group also acquired the activities of Bam Deutschland in the autumn of 2021. We consider the current transaction as a major step in the portfolio adjustment of our Group, based on our strategy ‘building a sustainable tomorrow’. Bam focuses on growth markets in the Netherlands, the United Kingdom and Ireland, where we have scale and competitive advantage.”
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