BAM sells US operating company and adjusts profit forcast for 2007
Bunnik, Netherlands, 25 September 2007 – Royal BAM Group nv has reached agreement about the sale of the US operating company Flatiron Construction Corp. to Hochtief AG in Essen, Germany. Both the Supervisory Board of Hochtief and the Supervisory Board of BAM have lent their approval to the transaction.
Hochtief will acquire all shares of Flatiron for an amount in cash of approximately €172 million (USD 243 million). After deducting expenses and provisions BAM will make by the sale a book profit of approximately €70 million. The sale is in line with the Strategic Agenda 2007 – 2009, which has been published by BAM year-end 2006. One of the strategic goals is to strengthen the European base of the Group, as is shown by BAM’s recent acquisitions of among others the Belgian project developer Kairos and the Belgian civil engineer Betonac.
Adjustment profit forecast 2007 Royal BAM Group
Including the sale of the US operating company, Royal BAM Group expects to record turnover of more than €9 billion for 2007 and a net profit of at least €296 million. This net profit forecast includes the above mentioned book profit of approximately €70 million as well as the operational profit of Flatiron up to and including the third quarter of 2007.
Flatiron Construction is active in the US and Canadian civil engineering market. The company specialises in constructing transportation projects. Flatiron remains among the five largest bridge builders in the United States. Flatiron has around 1,700 employees. Its head office is located in Longmont, near Denver in Colorado. In 2006 Flatiron realised a turnover of €496 million.
- press: A.C. Pronk, + 31 (0)30 659 86 21.
- analysts: P. Juge, + 31 (0)30 659 86 01.