GVA to merge with Germany’s Bilfinger to form new Europe-wide property consultancy

BIRMINGHAM-based property consultancy GVA has announced that Bilfinger, a £6.9bn turnover global engineering and services group from Germany, is to become its strategic partner.
 
A memorandum of understanding has been agreed that will, subject to outstanding legalities and a shareholder vote, see the firms effectively merge.

The financial terms have not been disclosed. 

GVA says the move will aid its drive for major growth and significantly strengthen its ambitions to compete on the world stage.
 
Exchange of contracts and completion is expected before the end of June. The transaction will involve a transfer of GVA’s existing shares to give Bilfinger Real Estate 100% ownership.
 
Bilfinger, which is based in Mannheim and listed on the stock exchange in Frankfurt, employs 74,000 staff throughout its 14 divisions worldwide.
 
The Bilfinger group is structured into four business segments – industrial, power, construction and building and facility. Within building and facility sits its real estate division with some 1,500 property professionals and an annual turnover of £130m.
 
Bilfinger Real Estate has operations in Germany, UK, the Netherlands, Switzerland, Turkey, Poland, Canada and Australia. Existing clients include RBS, Morgan Stanley, Credit Suisse, AXA, Union Investment and IVG. 
 
The decision to work with Bilfinger follows the completion of a review by investment bank Canaccord Genuity, which commenced in October, into GVA’s options to enhance its medium to long-term growth.
 
This transaction will provide an exit for LDC, the private equity firm with a 27.5% stake in GVA. 
 
Rob Bould, chief executive of GVA, said: “This hugely exciting deal marks the most significant and transformational milestone in the history of our company. It represents a major opportunity for GVA’s future growth and prosperity.”

Ian Stringer, regional senior director at GVA in the Midlands, said: “The service we provide our clients will very much remain the same. There will be no change to our team structures or to our office locations. Nor will our brand, which represents huge capital value, change immediately.

“Our brand will evolve over a matter of years, not months. However, it’s equally critical to convey that our partnering with Bilfinger Real Estate combined with LDC’s exit will offer a very exciting opportunity for many clients and an unprecedented prospect for us to create a truly international dimension to our UK-facing business.”