BAM divests its German arm to Zech
Dutch construction firm Royal BAM has completed the sale of its German arm BAM Deutschland to Bremen-based real estate firm Zech in a bid to support growth in its core markets of the Netherlands, the UK and Ireland.
The company said the divestment of the company and its subsidiaries (with reported annual revenues of approximately €500 million and 750 members of staff) would support BAM’s capital ratio by shortening the balance sheet, and will reduce liquidity and the use of bonding.
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Ruud Joosten, Royal Bam Group’s chief executive, commented: “This transaction is a major step forward in delivering our Building a Sustainable Tomorrow strategy. Bam is focusing on growth markets 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 a successful future of the company and its employees.”
The BAM Group is active in two business lines: construction and property and civil engineering, as well as in public-private partnerships. Its financial report for the first half-year of 2021 showed that its revenue had increased by 17% to €3.6 billion compared to the same period last year.
The Group said that the easing of the lockdowns causes by the Covid-19 pandemic and the company’s cost reduction programme initiated in September 2020 resulted in a strong recovery.
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Ruud Joosten highlighted that the company was well placed to capture the opportunities provided by digitalisation and added: “In the Netherlands, we further strengthened the portfolio towards sustainability and industrialised construction with the acquisition of off-site production facilities for modular construction.”
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