Budopol Wroclaw closer to acquisition

2010-08-23

In the next few weeks, the construction firm Budopol Wroclaw will sign a preliminary contract to acquire a company operating in the road engineering branch. According to estimates, Budopol will earn revenues of PLN 120m (€30.7m) this year.
Acquiring a road engineering firm is part of Budopol's broader strategy aimed at creating a segment in its group responsible for road engineering tasks. The takeover will set Budopol back PLN 5-8m (€1.3-2m), and once the transaction has been finalised, which is expected to happen by the end of this year, the group will take part in tenders worth several million zloty. The acquisition will be financed with cash from a share issue, which provided the company with proceeds of PLN 26m (€6.6m).
At the present time, Budopol is building six construction projects in Poland's biggest cities on the basis of an order for Gant Development, and it has no plans for the time being to further enlarge the group. The company's order book for 2011 already includes contracts worth in total PLN 80-90m (€20.5-23m).

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