German industrial services firm Bilfinger Berger has expanded its operations in the United States by announcing the takeover of American construction and infrastructure services firm Westcon Incorporated.
Bilfinger Berger executive board member Thomas Töpfer says the acquisition fits in well with the German industrial giant’s expansion plans in the US, where its current activities revolve primarily around industrial facility maintenance in the oil and gas industry in the southern part of the country.
Töpfer says Westcon, which is based in North Dakota and whose range of services includes piping systems, steel construction, plant assembly and plant maintenance and repair, is well positioned to capitalise on the huge investments currently being made in shale and other alternative gases in the north and east of the country.
“With the acquisition of Westcon, we are expanding our regional presence in the USA and at the same time gaining access to new clients,” Töpfer says.
Under the terms of the sale, for which the financial terms have not been disclosed, Bilfinger has acquired 100 per cent of the company, which was previously owned by management and financial investors.
All told, Westcon has around 1,000 employees and output volume of approximately €150 million ($A180.5 million). Added to Bilfinger’s existing US holdings of €600 million and 3,000 strong workforce, the combined US presence will amount to turnover of around €750 million and staff of around 4,000, meaning that Westcon will add about one third to Bilfinger’s total US operations.
In its announcement, Bilfinger made no indication of whether or not any significant job cuts or structural changes to Westcon’s operations will result from the acquisition.
Given the different geographical profile of the two company’s presence within the US, however, it is unlikely that anything major will happen in that regard.