Part of Philipp Holzmann activities to be continued

's-Hertogenbosch, the Netherlands - Heijmans N.V. (construction and related activities) expects to reach an agreement regarding the acquisition of the shares of Dubbers-Malden B.V. in Malden (Gelderland), as well as the assets of Franki Grundbau GmbH in Hannover and of the Grafenwöhr branch (near Neurenberg) from Philipp Holzmann.

A letter of intent has been signed by Heijmans and the official receiver.

 

The divisions to be taken over shall be transferred to an enterprise yet to be founded under the name Philipp Holzmann. This prevents the new company from being encumbered with unknown risks from the past. Turnover in 2003 is expected to be EUR 325 million, including the divisions previously announced.
The finalisation, including the prerequisite authorisation from (government) authorities and the working out of sound financing of the transaction, is expected sometime around 17 June 2002.

 

Recently, among other things, in the German press, uncertainty has been voiced regarding the possible takeover of divisions from Philipp Holzmann by Heijmans. Heijmans regrets that, for whatever reason, the impression has been created that it plans to takeover the entire Holzmann group. Heijmans emphasises that from the beginning, it has made known its interest in profitable activities or activities free of risks from the past. This concurs with Heijmans' strategy and risk policy. The company wants to develop into a European player through refortification of its market position in the Netherlands and Germany. It wants to realise this through the acquisition of sound (activities of) companies.

 

 

 

Background information

 

With regard to turnover, Heijmans N.V. holds the third position among construction companies in the Netherlands and is the market leader in Belgium. The shares of the company, founded in 1923, have been listed on the Amsterdam stock exchange Euronext since 1993. Heijmans N.V. is active in the building industry, property development and related industries. The main markets in which Heijmans is active are: Living and Working accommodations, Traffic and Transportation and Industry and Production. The axis of the activities is located in the Netherlands where Heijmans has strong land positions. The headquarters are located in Den Bosch. The market is served by a dense network of branches. In addition, the company is active in Belgium and Germany. Heijmans employs approximately 10,000.

 

In financial year 2001, operating income rose by 46% to approximately EUR 2.3 billion. Net profit also rose by approximately 46% to EUR 70.2 million. For 2002, Heijmans is counting on further increased operating income and profit, despite moderate macro-economic prospects. Not including acquisitions, operating income shall amount to EUR 2.5 billion, with net profit of EUR 84 million.

 

As a result of autonomous growth and takeovers, the group has succeeded in obtaining a top - 3 position in its domestic market. During the past eight years, an average increase in turnover of 20% was realised, 7% of which through autonomous growth and 13% through acquisitions. Average profit is 30%. The specific objective for 2006 is turnover of EUR 5 billion, 20% of which (EUR 1 billion) will be generated abroad. This would put Heijmans into the top 10 in Europe.

From its strong domestic position with a focus on neighbouring countries, Heijmans is pursuing a prominent position in the European market of the future. It uses the so-called 'oil spill theory'; the acquisition of profitable companies in adjoining territories. This is realised through the acquisition of small and medium-sized companies and by effectively taking advantage of opportunities in the market. A future takeover of activities of Philipp Holzmann dovetails with that strategy. In addition, both groups are familiar with their respective working methods. Even before the group ran into difficulty, Heijmans worked closely with Philipp Holzmann, for example in the construction of the Westerschelde Tunnel, the Sophia Tunnel and the High-Speed Railway.