Dutch company buys French group’s submarine cable business

Dutch company buys French group’s submarine cable business

/ Financial News / Sunday, 06 January 2019 09:41

The French group of technical services companies Spie announced to have reached an agreement with the Dutch group Boskalis for the sale of its submarine cabling business in Germany, for an undisclosed amount.

This sale is part of Spie's strategy to focus on its core business, characterized by recurring multi-technical services contracts, says the company, specialist in technical services in energy and telecommunications, in a communicated.

The divested business is the largest part of the “Gas and Offshore” division of the German group SAG, which specializes in energy infrastructure services and was bought by Spie in 2017 for 850 million euros.

All assets and employees related to the business will be transferred to the Boskalis group. The transaction is expected to be finalized in the first quarter of 2019, the statement said, noting that the rest of the division is also sold, but in a separate process.

 “The completion of this transaction will mark the end of Spie's major reorganization and restructuring projects,” said Gauthier Louette, CEO of the group, quoted in the statement.

The company has increased repurchase operations in recent years.

Since the beginning of the year, Spie has acquired four companies: Systemat in Belgium (telecommunications infrastructure), as well as Fluigetec (nuclear), Buchet (electrical installation) and Siétar & VTI (industrial boilermaking for the food industry) in France, for a total annualized activity of 91 million euros.

The consolidation of several acquisitions completed in 2017, notably that of SAG, contributed particularly to the growth of its revenues.

In November, the Group confirmed its objectives for the current fiscal year and said it aims to increase “by more than 7% at constant exchange rates” of its activity, and an operating margin “at 6% or more”.

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