Ferrovial Agroman, through its Polish subsidiary Budimex, has paid close to 56 million euro for PNI, one of Poland's leading railway construction companies. PNI ended the first six months of 2011 with a backlog of 462 million euro. This reinforces Ferrovial's presence in Poland and its commitment to a market with significant growth potential.
Madrid, August 4, 2011
. Ferrovial, through Ferrovial Agroman's
Polish subsidiary Budimex
, has reached an agreement with Polish railway infrastructure company PKP to acquire its subsidiary Przedsiebiorstwo Napraw Infrastruktury (PNI), specialised in civil engineering and railway design, construction and maintenance. This transaction cost Ferrovial close to 56 million euro (225 million zlotys).
The acquisition, which commenced in October 2010 when the Polish government announced plans to privatise the company, is expected to be closed this October, following approval by the Polish competition authorities.
PNI, a leader in railway construction in Poland, had a backlog of 462 million euro at June 2011. Revenues in 2010 totalled 140 million euro.
According to Ferrovial Agroman CEO Alejandro de la Joya: "The acquisition of PNI will provide notable synergies to Budimex in terms of seizing business opportunities in Poland, a country with great growth potential."
There has been significant interest in PNI in Europe's infrastructure industry ever since PKP announced the sale of its subsidiary. "I am certain that PNI's expertise in railways, together with Budimex's strength in Poland and the extensive experience of Ferrovial Agroman, which has been working on high-speed railways in Spain since the 1990s, will enable us to provide more innovative, efficient solutions to the Polish market in future tenders," said De la Joya.
PNI's most important contracts include refurbishing the Danzig station, rebuilding the Hrubieszów station and upgrading the railway between Krakow and Rzeszów. The company has also upgraded the railway lines between the following cities: Sulechów-Luboñ, Bednary-Zgierz and Goleniów-Kolobrzeg, among others.
PNI has a staff of over 1,700 and operates throughout Poland from offices in Warsaw, Katowice, Radom and Stargard Szczecinski.
In the first half of 2011, Budimex obtained revenues of 549 million euro from construction activities, a 48.3% increase compared with the same period last year. Its backlog amounted to 1,990 million euro, a 15% increase year-on-year. In the first half of 2011, Ferrovial Agroman obtained revenues of 1,985 million euro and had a backlog of 9,895 million euro, 67% of which came from outside Spain.