Imtech acquires AE Arma-Elektropanç: strong position in Turkey, stepping stone to emerging markets
René van der Bruggen, CEO Imtech: 'This acquisition is a huge leap forwards for Imtech. In our 2015 growth strategy (objective: revenue level of 8 billion euro), we have committed ourselves to strengthening our position in countries new to Imtech, such as Turkey. The AE Arma-Elektropanç acquisition will help us achieve this goal. At the same time, we are able to create a stepping stone to emerging markets such as the Middle East, Russia and various former Soviet Republics. Under Imtech's robust financial wings, AE Arma-Elektropanç will be able to grow further. Cooperation using specific technological Imtech competences provides additional growth opportunities in the long-term. As an extension of the AE Arma-Elektropanç activities, in time further acquisitions in these countries will also be possible. This new acquisition enables us to create extra growth potential. Further internationalisation of our activities is on the horizon.'
AE Arma-Elektropanç profile
AE Arma-Elektropanç (official name: AE Arma-Elektropanç Elektromekanik Sanayi Mühendislik ve Ticaret A.S.) is a top-3 player in the technical services market in Turkey. The company was established in 2001 following a merger between the long-established family companies Arma (founded in 1981, specialised in mechanical and electrical services) and Elektropanç (founded in 1977, specialised in electronic and electrical services). This facilitated the provision of multidisciplinary technical services, also one of the important features of Imtech's approach. AE Arma-Elektropanç provides a comprehensive range of technical services, including high and low voltage, energy generation, power distribution, communications networks, HVAC (air and climate solutions), sanitation, water treatment, sprinkler services, fire alarm, security systems safety etc. This multidisciplinary technical approach has led to a strong growth.
Besides the activities in its own country, the company is increasingly active outside Turkey. Following in the footsteps of large Turkish construction companies (for example Ant Yapi Construction, Nurol, Baytur Construction and Koçak Construction), it has built up a position in emerging markets such as the Middle East, Russia and various former Soviet Republics, where it has a good reputation for providing technical services for mostly large, complex and imposing projects. Over the years, the company has built up numerous local relationships, for example with the Russian developer LLC Rasen Stroy, Kontek Construction, Monotek Construction from Russia, Al Fattan MRCB Construction in Dubai, DHABI Contracting from Abu Dhabi and Azwirt from Azerbaijan. As technology partner to many Turkish construction companies and increasingly to developers and builders from the emerging markets referred to above, AE Arma-Elektropanç is able to deliver high quality services, on time and within budget. Optimal project management skills, combined with (local) capacity, enable it to act as reliable partner.
Its activities cover a wide range of market segments, such as commercial buildings, hotels, luxury apartment complexes, government buildings, shopping centres, hospitals, tourist services, airports and industry. Examples of projects which are currently on-going are: the Radisson Blu hotel in Istanbul, the luxury apartment complex Ak-Asya Acibadem Residence in Istanbul, the 380 metre high Mercury City Tower in Moscow (170,000 m2, the tallest building in Europe and Russia), the luxury office center White Garden of an investment AIC Lincoln in the heart of Moscow, the luxury Bab Al Qasr Hotel & Residence project in Abu Dhabi (155,000 m2), the terminals at the new Baku Heydar Aliyev airport in Azerbaijan and Pulkova Airport in St Petersburg in Russia, a new hospital in Noyabirsk, and a new building for the marine faculty of the Piri Reis University in Turkey. AE Arma-Elektropanç also provided all the electrical solutions in the recently opened luxury apartment complex Anthill Residence (two towers of nearly 200 metres high, 150.000 m2) in Istanbul and the prestigious tower complex City of Capitals in Moscow (320 metres high, 360,000 m2).
The Head Office of AE Arma-Elektropanç is located in Istanbul, Turkey. It also has offices in Moscow (Russia), Baku (Azerbaijan), Abu Dhabi and Dubai (United Arab Emirates), Beirut (Lebanon) and Doha (Qatar).
The diversity of its customers, countries and market segments in a strongly growing market environment not only generates numerous growth opportunities, but also gives the company a manageable risk profile.
Extra growth potential
The acquisition is attractive for Imtech. Under Imtech's robust financial wings and in a market environment with enormous potential, AE Arma-Elektropanç is capable of fast organic growth. If relevant, the market position may be strengthened in the long term with additional acquisitions. Exchange of technological Imtech competences such as energy technology, waste water treatment, data centre technology, medical technology, and industrial automation can promote growth in the new Imtech countries, also due to openings into new market segments. The AE Arma-Elektropanç management will remain in place following the acquisition, thus guaranteeing continuity. This new acquisition enables Imtech to create an extra growth potential.
Through this acquisition, the number of Imtech employees raises by 4% to approximately 28,600. The acquisition is subject to the approval of the Turkish competition authorities.
Imtech N.V. is a European technical services provider in the fields of electrical solutions, ICT (information and communication technology) and mechanical solutions. With 28,600 employees, Imtech achieves annual revenue of more than 5.1 billion euro. Imtech holds strong positions in the buildings and industry markets in the Netherlands, Belgium, Luxembourg, Germany, Austria, Eastern Europe, Sweden, Norway, Finland, the UK, Ireland and Spain, the European markets of ICT and Traffic as well as in the global marine market. In total Imtech serves 23,000 customers. Imtech offers added value with integrated and multidisciplinary total solutions that lead to better business processes and more efficiency for customers and the customers they, in their turn, serve. Imtech also offers solutions that contribute towards a sustainable society, for example in the areas of energy, the environment, water and mobility. Imtech shares are listed on the NYSE Euronext Amsterdam, where Imtech is included in the Midkap Index. Imtech shares are also included in the Dow Jones STOXX 600 index. In 2011 Imtech has been granted the designation Royal.