The demand for total solutions is clearly visible in the market. The number of Design and Construct contracts is increasing, and there is also a growing number of projects in the PPP market. The importance of the plant component in this is greater than ever. The increasing need for service and maintenance concepts is linked to this.
The proposed takeover of Burgers Ergon is a significant step in Heijmans' full service strategy. The takeover fits in with the company's strategic target for 2008: to generate 35% of turnover in the design phase and 20% in the service and maintenance phase of the process.
Burgers Ergon
Burgers Ergon was founded in 1928 and has been a leading player on the Dutch market ever since. Measured by revenue, the firm is one of the top 5 technical contractors. The company operates exclusively on the Dutch market and employs around 1,400 people. Last year, the eight operating companies spread throughout the Netherlands - whose head office is in Eindhoven - generated turnover of approximately EUR 190 million. The expected turnover for 2006 is approximately EUR 210 million. About 65 percent of turnover is related to new developments. The service and maintenance activity represents some 35 percent of turnover.
Burgers Ergon specialises in electrical engineering and mechanical engineering projects. The technical contractor has specialist business units for both the design phase and the management phase. The company is also active in such specialist areas as fire protection, sprinkler installations, security systems, and measurement and control engineering.
A few recent contracts:
- Philips High Tech Campus, Eindhoven
- Renovation of Ministry of Finance (PPP)
- New development of the Faculty of Science, University of Amsterdam
- Nanotechnology Laboratory, TNO Delft (in conjunction with Heijmans)
- Shell Technology Center, Amsterdam (in conjunction with Heijmans)
- Leerpark Dordrecht (in conjunction with Heijmans)
Due diligence
Heijmans will start a due diligence study, which is expected to be completed by the middle of January 2007. Burgers Ergon will continue its activities as an independent division under its own name. Heijmans expects it to make a positive contribution to the profit per share in 2007.
For more information
Press:
Frank Janssen
Director of Group Communications
+31 73 543 51 69
Analysts:
Fons van Lith
Director of Investor Relations
+31 6 51314952
Burgers Ergon:
Bert van der Els
Managing Director
+31 40 2197195
bvdels@burgers-ergon.nl