Bilfinger Berger takes over Salamis Group
Continuation of successful acquisition strategy:
Bilfinger Berger takes over British market leader in maintenance of offshore platforms
Mannheim, Germany – Bilfinger Berger is becoming market leader in the maintenance of offshore platforms in the United Kingdom: the Group, through its subsidiary Rheinhold & Mahla, has acquired the Salamis Group Ltd., located in Aberdeen. The company has a share of over 40 percent of operations and support services for the UK offshore oil and gas market and works for the best-known companies in that industry. Salamis had an output volume of more than €160 million in 2005 and achieves the 4 percent EBIT margin required by Bilfinger Berger in the services business. It was agreed with the previous owner, the Danish A.P. Moller-Maersk A/S, to keep the purchase price confidential.
Salamis does business almost exclusively through long-term framework contracts. The range of services includes scaffolding, fire and corrosion protection, insulation as well as the cleaning and inspection of facilities.
With the takeover of Salamis, Bilfinger Berger has further expanded its position in the maintenance of oil and gas facilities in the North Sea. There, Rheinhold & Mahla is already among the leading service companies, primarily in the Norwegian offshore business. Considering the development of the oil price and growing demand for energy, as well as rising safety requirements and an increase in the need for maintenance, Bilfinger Berger expects continued heavy demand in the area. The integration of Salamis in the Rheinhold & Mahla Group creates the opportunity to provide comprehensive offshore services in the entire North Sea region.
The Salamis takeover represents the consistent continuation of Bilfinger Berger’s successful acquisition strategy. For the expansion of its Services segment, the Group has, since 2002, acquired companies with a total value of €750 million. In the current year these companies will generate an output volume of more than €2.5 billion. All of these companies have met or exceeded the expectations placed on them and have made the still-young segment into an important profit generator for the Group.