STRABAG, a European construction giant, is set to expand its operations to Australia through the acquisition of Georgiou Group, a Perth-based infrastructure construction specialist.
The signing of the final purchase agreement is anticipated before the end of the year, with key terms already agreed upon by the parties involved.
The deal is pending approval from Australia’s Foreign Investment Review Board (FIRB) and the STRABAG Supervisory Board.
Georgiou Group, with 875 employees, has an annual output of approximately A$1.3bn ($843m). The purchase price, despite not yet finalised, is expected to be in the low three-digit million euro range.
STRABAG plans to finance the transaction through its existing cash and cash equivalents.
The company has previously undertaken projects in Australia such as the Alkimos wastewater treatment project and a seawater intake and outfall project in Perth.
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By GlobalDataThis acquisition marks STRABAG’s commitment to establishing a permanent business presence in the country.
Georgiou Group, with expertise in road and infrastructure construction, is currently involved in significant projects such as a bridge over the Fitzroy River in Western Australia and The Northern Road in New South Wales.
Founded in 1977, Georgiou Group has evolved into a national construction group under the leadership of the Georgiou family. The current CEO, Gary Georgiou is set to continue leading the company post-acquisition.
STRABAG CEO Klemens Haselsteiner said: “Our core markets in Europe are proving to be a stable source of earnings despite the currently difficult conditions. To ensure a robust position in the long term, however, it is essential that we also diversify our portfolio by expanding outside of Europe. Australia fulfils all the key criteria that are important to us in this regard: a sound financial budget, legal certainty and high standards of business compliance.
“Georgiou Group represents a robust enterprise not only in operating and financial terms; what impressed us even more was the cultural fit across continental boundaries. We share an appreciation for teamwork, effective risk management and the right balance between operating business and central functions, the quality of the services and the already profitable growth.”
