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- Stock Exchange Release
- 30.05.2008 07:00 CET
YIT TO BUY MCE'S BUILDING SYSTEM SERVICE OPERATIONS IN GERMANY, AUSTRIA, POLAND, THE CZECH REPUBLIC, HUNGARY AND ROMANIA
STOCK EXCHANGE RELEASE MAY 30, 2008 AT 8.00
YIT TO BUY MCE'S BUILDING SYSTEM SERVICE OPERATIONS IN GERMANY, AUSTRIA, POLAND, THE CZECH REPUBLIC, HUNGARY AND ROMANIA
YIT Corporation and MCE AG have signed an agreement on the sale of MCE's building system service business in Germany, Austria, Poland, the Czech Republic, Hungary and Romania to YIT on May 29, 2008. The value of the acquisition is EUR 55 million. The amount to be paid in cash in the transaction will be specified further when the deal is closed, once the net debt of the acquired operations has been deducted from the value of the acquisition. The completion of the transaction is subject to approval by competition authorities.
It is estimated that the acquisition will be completed by July 31, 2008.
The operations acquired by YIT provide a broad range of services in the field of building systems and their maintenance and operation. The purchased operations employ about 1,900 people. Revenue for 2007 amounted to EUR 355 million. Of the revenue, slightly over 40% was generated in Germany, slightly over 40% in Austria, and the remaining approximately 15% in Poland, the Czech Republic, Hungary and Romania. The acquired operations complement YIT's services, and the transaction is not expected to result in personnel reductions.
The purchase of the operations is part of YIT's strategy to expand its offering of building system services geographically. As a result of the transaction, YIT will expand its operations to six new countries. Geographical expansion aims at gaining a position in new markets, creating opportunities for profitable growth and maintaining a balanced business structure by increasing low capital intensive services.
- The transaction gives a foothold in new markets and provides opportunities for growth. We continue to steer the acquired operations towards long-term service agreements and upkeep and maintenance works. The aim is to improve the profitability. We have a good track record of similar business and profitability development from acquisition of ABB's building system operations in 2003, comments Hannu Leinonen, President and CEO of YIT Corporation.
The purchased business will form a new division within YIT's Building Systems business segment. Karl-Walter Schuster (58), currently head of MCE's Building Technology Division, will be appointed as head of the new division. Following the transaction, the Building Systems business segment will account for about half of YIT Group's revenue. Geographically, the purchased operations account for approximately 9% of the Group's revenue. The transaction will not change YIT Group's outlook for 2008. In its Interim Report on 25 April 2008, YIT estimated that the revenue and profit before taxes for 2008 will increase compared to the previous year.
Information sessions, webcast and conference call
YIT will hold an information session today on May 30, 2008 at 10.00 (CEST) in English at hotel Radisson SAS Royal, address Runeberginkatu 2, 00100 Helsinki. It is also possible to participate in the event through a conference call. Participants are asked to call the designated number +44 20 7162 0025 a minimum of 5 minutes before the conference call begins.
A webcast of the event can be viewed live at www.yitgroup.com/webcast. The webcast replay will be available at the same address starting at approximately 12.00 (CEST).
-------------------------------------------------------------------------------- | Time zone | The information session, | Recording of the webcast | | | conference call and webcast | presentation will be | | | presentation will start at | available at | -------------------------------------------------------------------------------- | EEST (Helsinki) | 11:00 a.m. | 13:00 a.m. | -------------------------------------------------------------------------------- | CEST (Paris, | 10:00 a.m. | 12:00 a.m. | | Stockholm) | | | -------------------------------------------------------------------------------- | BST (London) | 9:00 a.m. | 11:00 a.m. | -------------------------------------------------------------------------------- | US EDT (New | 4:00 a.m. | 6:00 a.m. | | York) | | | --------------------------------------------------------------------------------
YIT CORPORATION
Juha Kostiainen Senior Vice President, Corporate Communications and Business Development
For further information, please contact: Petra Thorén, Senior Vice President, Investor Relations, YIT Corporation, +358 40 764 5462, petra.thoren@yit.fi Juhani Pitkäkoski, President, YIT Building Systems Ltd, +358 400 451 644, juhani.pitkakoski@yit.fi
YIT is a successful European service company in building systems, construction services and services for industry. We build, develop and maintain quality living environments in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania and Russia. In 2007, YIT's revenue amounted to EUR 3.7 billion, and the Group employed more than 23,000 people. YIT's share is listed on OMX Nordic Exchange Helsinki. www.yitgroup.com
MCE AG and its 8,300 employees plan, manufacture, erect and service plants and components for the process industry in Europe. In 2007, sales of the MCE group amounted to EUR 1.1 billion. Majority owner of MCE AG are Deutsche Beteiligungs AG (DBAG) and one of the buyout funds managed by it, holding 75 % of the company shares; Andlinger & Company Group holds an interest of 25 %. The MCE AG headquarters are in Linz, Austria. The strategic core area is Europe where the MCE group has a close network of locations in Germany, Austria, Poland, Slovakia, the Czech Republic, Hungary and the Ukraine. www.mce-ag.com