Imtech disinvests fire extinguishing products and systems
Gouda, the Netherlands - As part of its 2012 strategic growth plan, Imtech (technical services provider in Europe) has disinvested and sold non-core activities in the field of extinguishing products and extinguishing systems to private equity specialist Bencis Capital Partners. The transaction concerns the business units Saval (the Netherlands and Belgium) and Knowsley (United Kingdom). The combined annual turnover of the sold companies totals approximately 36 million euro with about 230 employees.
Imtech CEO René van der Bruggen: ’Some people may be surprised by this sale. After all, Imtech is well-known for its active acquisition strategy. The Imtech strategic growth plan for 2012 is based on obtaining strong market positions, at least in the top 3 in the relevant strategic markets for Imtech. Activities in the field of fire extinguishing products and extinguishing systems do not fulfil these strategic principles. With revenues of 36 million euro and a limited geographical scope, the scale of these activities is too small. Expanding into a large European player in fire-fighting requires significant investments. As part of its strategic growth plan Imtech wants to maintain a sharp focus on selected strategic growth markets like ICT, traffic and maritime technology. Instead of an orientation towards services - the core business of Imtech – these activities lean heavily towards products (development, sale and servicing). Therefore, the degree of synergy and added value within Imtech is relatively low. The sale to a financially strong party like Bencis Capital Partners, who is willing to expand these activities, is the best solution for the future.’
Local players in extinguishing products and systems market
Saval (established and active in the Netherlands and Belgium) and Knowsley (established in the UK but active principally abroad in oil and gas producing countries) specialise in producing, selling and maintaining fire extinguishing products and extinguishing systems. With the maintenance of approximately 400,000 extinguishing products in and around buildings in the Netherlands and Belgium and the supply of dozens of fire extinguishing systems at oil and gas mining sites mainly in the Far and Middle East and Africa, these companies are local players with only a strong market position in specific segments and geographical area in the consolidating market for extinguishing products and systems. Better opportunities for the years ahead lie in joining a financially strong party who is focussed on this segment.
Insufficient synergy with other Imtech activities
There was also insufficient synergy with the other activities within Imtech. The Saval and Knowsley product-focused companies operate stand-alone under their own names and are usually not offered as part of an integrated package. Therefore, their activities generate relatively low added value with other activities of Imtech.
Continuation of other fire-fighting activities
Despite these disinvestments Imtech will continue other fire-fighting activities as part of its services portfolio, such as fire detection and sprinkler technology and the German ‘Brandschutz’ activities (total fire-extinguishing solutions). Similarly, Imtech will continue to offer the installation and maintenance of fire-extinguishing systems (as part of its total range) where in the Netherlands Saval will act as a preferred supplier.
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