Strabag has announced that it has bought a Perth-based road and infrastructure specialist
European construction group Strabag has reached an agreement on key terms to acquire Perth-based road and infrastructure construction specialist Georgiou Group.
The signing of the final purchase agreement is expected to take place before the end of the year, pending approval from Australia’s Foreign Investment Review Board (FIRB) and the Strabag Supervisory Board.
Acquiring Georgiou Group will enable Strabag to fulfill its plan of expanding its presence in Australia.
Strabag CEO Klemens Haselsteiner says Strabag’s core markets in Europe are proving to be a stable source of earnings despite difficult conditions, however expanding outside of Europe is essential to ensure a strong position in the long term.
“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,” Haselsteiner says.
“In our many reciprocal visits, one thing became clear – 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.
“What we have here are two family businesses that are growing together, and as we learn from each other, I am convinced that we will become even stronger than before.”
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The Strabag Group has already been active in Australia in the past, having worked on individual projects such as the Alkimos wastewater treatment project and the seawater intake and outfall project in Perth.
With this acquisition, Strabag now aims to establish a permanent business presence in the country.
Georgiou Group was established in 1977 by the Georgiou family and has gradually transformed into a national construction group. It has 875 employees and generates an annual output of approximately A$1.3 billion.
Current CEO, Gary Georgiou, will continue to lead the company.
“As part of the Strabag Group, Georgiou will benefit from belonging to a large, highly developed multinational company, giving us financial backing and access to proven technical expertise and experience that goes beyond our current resources,” Georgiou says.
“This extension of capabilities offers immense value and opportunities not only for Georgiou as a company, but also for our employees and the Australian construction industry as a whole.”