The estimated price of the parts that will be taken over is EUR 14.5 million. Oevermann will stay owner of the real estate. Revenues for 2006 are budgeted at around EUR 230 million, of which some 70 per cent derives from roads construction activities. This year the parts of Oevermann that will be taken over, expects to achieve a normalised profit from operations of around EUR 4.5 million. The definitive conclusion of this takeover is expected at the beginning of January 2007. From that time Oevermann will be included in the consolidation. The effect on earnings per Heijmans N.V. share is expected to be positive in 2007. The acquisition covers the assets and liabilities of Oevermann Verkehrswegebau GmbH, Oevermann Hochbau West GmbH & Co.KG and Oevermann GmbH & Co. KG., as well as 100 per cent of the shares of CMG GmbH & Co.KG.
Strategy and prospects
Heijmans has been active in Germany for some 30 years in groundworks such as the construction and maintenance of dykes. Heijmans operating company Franki Grundbau specialises in heavy foundation construction and in utility construction and infrastructure. Through Heitkamp Rail, Heijmans is active in both traditional railway construction and in laying high-speed lines. With this company a position has now been acquired on the (inter)national rail market. Franki and Heitkamp Rail are both active in the Dutch market as well. Some 535 Heijmans workers currently operate in Germany. The expectation is that Heijmans will achieve profit from operations in Germany this year and, in case of greater proceeds, an increase in profit.
Germany is the largest European market which now appears to have reached its lowest point and for which the economic outlook is positive. Annual construction production is around EUR 200 billion. The roads construction segment represents around EUR 13 billion of this and is developing positively. In the Dutch market, the total annual construction production is around EUR 50 billion.
Through the acquisition of Oevermann, and with a view to the improving market prospects, Heijmans is positioning itself specifically in the German roads construction market. Heijmans expects to achieve synergistic effects with its Dutch roads construction activities. Purchasing benefits can be achieved through the greater volumes of roads construction raw materials. But an exchange in terms of asphalt production, techniques and joint product development will also take place. The roads construction market in Europe is being standardised to European norms earlier, for example, than the construction market. For many years already, Heijmans has also been active in roads construction in Belgium.
Oevermann
Oevermann began in 1907 and is based in Münster. The company's main activity is roads construction. Oevermann also carries out projects in homes and utilities construction. Oevermann has its own asphalt production capacity. There are eight branches, mainly serving the western part of Germany bordering on the Netherlands (North Rhine-Westphalia and Lower Saxony) and the axis of the Ruhr area up to Berlin/the Polish border. Oevermann's construction branch concentrates mainly on North Rhine-Westphalia.
The company carried out a major restructuring in recent years in consequence of the mediocre performance of the construction market. It is expected that around 900 full-time employees will be working for the company as of January 1, 2007. Oevermann will continue to operate under its own name. The current management will continue to guide the company.
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