On 27 February 2018, ERBUD S.A. signed an agreement for the acquisition of 100 percent shares in the German company IVT Weiner + Reimann GmbH. The transaction value amounted to Euro 8.5 million. It is the largest Polish acquisition of a foreign entity operating in the field of engineering and service for industry.
Formally, the parties to the transaction are: ERBUD Beteiligungs GmbH, a newly established subsidiary indirectly dependent on ERBUD S.A. through a subsidiary ERBUD Deutschland Holding GmbH -as the buyer, and shareholders of IVT Weiner + Reimann GmbH - as the seller.
IVT Weiner + Reimann GmbH with headquarters in Oberhausen exists since 1982. It employs 241 people. Its core business is engineering and service support for industrial facilities (e.g. pipelines, pumps, silos, cooling towers), installation, maintenance and repair of power, air conditioning, ventilation and sanitary systems. The contract on purchase of IVT Weiner + Reimann GmbH also includes its subsidiary IVT Menzenbach GmbH, which deals with employee leasing.
The IVT's activities are concentrated in the region of Ruhr. Beside the main office, the company has nine plants located at its clients’ facilities. Among the IVT business partners are companies from the energy, mining, construction and chemical sectors as well as steelworks and refineries.
The average annual revenues of IVT amounts to EUR 23 million, EBITDA has an average annual level of EUR 2 million, and net profit is EUR 0.9 million.
„By taking over a German company with such a wide range of competences, we are significantly expanding our business model. We are increasing the geographical and segment diversification of our operations. The service and construction for industry segment will generate at least 23% of revenues. Another foreign company in the structures of the ERBUD Group will allow us to improve the profitability and also to increase the share of revenues from operations outside of Poland to over 20%. The current shareholders and at the same time members of the IVT Management Board, to whom the company owes its success, have our full confidence, which is why we plan to focus on its evolutionary development. It is worth adding as well that after the acquisition of IVT, over 2.5 thousand people will be employed in the ERBUD Group”, said Dariusz Grzeszczak, President of the ERBUD SA Management Board.
According to the provisions of the agreement, the existing members of the Management Board of IVT, namely Carsten Weiner and Heinz Reimann will be performing their previous functions for at least three years and a year, respectively.
“Thanks to the purchase of shares by ERBUD SA we are taking an important step towards further organic growth and expansion. Our unique know-how and great business relationships developed over the decades perfectly complement the potential and resources of the new owner. Corporate cultures of both entities are also very similar to each other, which is extremely important for us and our employees”, said Carsten Weiner, CEO of IVT Weiner + Reimann GmbH.
The Management Board of ITV expects that this year will bring the profits growth, especially in the field of electrical engineering as well as measurement and control technologies. It is worth noting that the German market for maintenance services in industry is valued at approx. EUR 20 billion, that is about 10 times more than in Poland, and has an enormous development potential. The value of maintenance services provided in the energy, chemical, petrochemical and refinery sectors only - that is in the areas of IVT's operations - is about EUR 13 billion.
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