German construction, engineering and services group Bilfinger yesterday confirmed a takeover approach for Scotland’s third-largest commercial property adviser.
The Mannheim-based giant, which has a global workforce of around 74,000 and enjoys revenues of 8.5 billion euros, has courted GVA for several months.
However, a deal reportedly worth more than £150 million has only now been put in front of almost 300 shareholders.
Bilfinger said the proposal, which it hopes to complete by the end of June, was “an important step forward” in its UK expansion plan as it seeks to add estate agency and management activities to a growing portfolio.
Both companies have agreed to keep the terms of the offer confidential, but Bilfinger said it planned to integrate its target into asset management division Bilfinger Real Estate under chief executive Aydin Karaduman.
“We want to continue to grow our facility services operations in the important British market,” said the German group’s executive board member Jochen Keysberg.
“We are thus moving the internationalisation of our activities in the building and facility business segment forward in a targeted manner.”
Bilfinger acquired Europa Support Services late last year, growing its technical and infrastructure support business in the UK and Ireland to more than 200m euros in the process.
London-headquartered GVA known in Scotland as GVA James Barr after October’s takeover of the of the Central Belt property specialist made it one of the country’s biggest advisory firms has around 1,500 employees and expects a turnover of around 190m euros this financial year.
It said there would be no change to its teams, offices or coverage.
GVA chief executive Rob Bould said the deal marked “the most significant and transformational milestone” in the company’s history.
“The strategic merger launches us on to the global stage, creating a partnership with Bilfinger Real Estate that immediately competes with the world’s biggest real estate advisers for global mandates,” he said.
“The combination of the established GVA UK platform and reputation, and Bilfinger Real Estates’ reach and resources, creates a challenger brand that is consultancy based.
“The creation of a new, leading brand also allows us to recruit and retain the best staff.”
Regional senior director and head of GVA James Barr in Scotland Keith Aitken said the service provided would “remain the same”.
“However, it’s equally critical to convey that our partnering with Bilfinger Real Estate will offer a hugely exciting opportunity for clients and an unprecedented prospect for us to strengthen the business in Scotland even further,” he added.
GVA said the decision to work with Bilfinger on a “preferred strategic merger” came eight months after it began a review into future growth options which was supported by investment bank Canaccord Genuity.
The transaction also allows private equity investor LDC, which holds a 27.5% stake in GVA, to exit.
LDC’s £40m initial investment, in 2007, helped support the company through a restructuring programme while providing GVA with the external capital necessary to undertake large acquisitions.