Skanska has completed the acquisition of Argentine Construction Company Sade
Skanska has acquired 100 % of the shares of the Argentine construction company SADE Ingeniería y Construcciones S.A. for USD 60 million, or about SEK 480 million. An earn-out over the next three years will determine the final price for SADE.
PRESS RELEASE, MARCH 8, 1999 25/99 SKANSKA HAS COMPLETED THE ACQUISITION OF ARGENTINE CONSTRUCTION COMPANY SADE Skanska has acquired 100 % of the shares of the Argentine construction company SADE Ingeniería y Construcciones S.A. for USD 60 million, or about SEK 480 million. An earn-out over the next three years will determine the final price for SADE. SADE is the second-largest construction company in Argentina with revenues of USD 370 million, approximately SEK 3 billion. Earnings after tax in 1998 were USD 10 million, or about SEK 80 million. The seller is Perez Companc S.A., one of the largest companies listed on the Buenos Aires stock exchange. "The acquisition of SADE provides us with local resources to further capitalize on the opportunities in South America," notes Claes Björk, President and CEO of Skanska AB. "Skanska has an excellent track record in South America - developed over the past 25 years - in hydropower and irrigation projects. A strong base in South America through the acquisition of SADE will provide additional business opportunities. We will be able to offer construction services not only to satisfy demand by local customers, but also to assist existing international customers who are expanding in South America. SADE is an attractive acquisition that fits well with Skanska's long-term strategy to expand its operations in South America. " "The due diligence of SADE was very positive, it confirmed our expectations of Sade as a well managed company with growth potential," says Stuart Graham, President, Skanska USA where SADE's operations will be included. "A company with the prestige and size of Skanska AB opens a new completing opportunity stage for SADE's family, encouraging its people to demonstrate they are capable of following-up the new intended pace of growth. Therefore, at SADE, we are very much enthusiastic and optimistic that we will be able to further develop our talent and full commitment that gave us our present leadership in the Argentine market", says Mario Piantoni, CEO of SADE. Skanska's acquisition of SADE is in line with its established practice of acquiring customer- focused regional companies in an expanding market and with good management. Founded more than 50 years ago, SADE has had local operations with favorable profitability for many years. It currently has about 4,600 employees, with operations throughout South America, including Argentina, Brazil, Chile, Peru and Venezuela. Skanska announced in January 1999 that it would acquire SADE together with a minority partner, Emepa S.A. However Skanska and Emepa were unable to reach a mutual agreement and accordingly, Skanska will acquire 100 % of SADE. Key figures SADE 1998:
Number of employees 4.603 (December 31,1998)
Stockholm, March 8, 1999 SKANSKA AB
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