YIT EXPANDS ITS CONSTRUCTION SERVICES TO SLOVAKIA THROUGH ACQUISITION
YIT International Construction Services has reached an agreement regarding the acquisition of Reding as., a Slovakian construction company. YIT will acquire 70 percentage the company's shares from its founder Ladislav Versovsky. Mr.
Versovsky will continue as the acquired company's Chairman of the Board and shareholder with a 30 percentage holding. Completion of the transaction is subject to the approval of competition authorities.
Reding is a construction company concentrating on residential and commercial buildings. The company's business idea includes contracting and housing and property development. The company has a good market position in Bratislava and its neighbouring areas. Reding's net sales amount to about EUR 30 million, and it has 180 employees. This family enterprise was established in 1997.
The transaction is part of YIT's strategy to expand its construction services business to Central Eastern Europe. In 2008, YIT expanded its operations to Czech Republic. Through the contract the operations of YIT International Construction Services will expand to Slovakia as a new country of operations.
“Slovakia and its capital Bratislava is a developing market area, where we can see a clear demand to improve the housing conditions on longer perspective.
After financial crises the development of construction market seems to stabilize and we expect that the GDP and construction market will grow faster than EU average in coming years, says Kari Kauniskangas, Head of YIT International Construction Services.
“The acquisition provides us with a good foothold in the new market area.
Reding has a competent personnel and management, and its reputation on the market is good. The company has several construction projects underway, and it also has some plots for future housing and real estate development projects in Slovakia,” says Jouni Forsman, Director of YIT's construction services in Central Eastern Europe.
“YIT provides the company and its personnel with good possibilities to develop the business and serve customers in a versatile manner. We can expand and enhance the business by combining the expertise of both companies, especially by exploiting local knowledge of Reding's personnel and the international experience and financial strength of YIT. This improves the possibility to grow in housing and real estate development business,” says Reding's Chairman of the Board Ladislav Versovsky.
Virva Salmivaara Senior Vice President, Corporate Communications
For further information, please contact Kari Kauniskangas, Head of International Construction Services, tel. +358 40 519 0198, firstname.lastname@example.org
YIT is a leading European service company in building systems, construction services and services for industry. We build, develop and maintain quality living environments in the Nordic countries, Russia, the Baltic countries and Central Europe. In 2009, YIT's turnover was EUR 3.5 billion. The Group has 23,500 employees. YIT is the largest construction company in Finland. YIT is the leading foreign housing developer in Russia and a major construction company in all Baltic countries. YIT's shares are listed on NASDAQ OMX Helsinki. For additional information, please contact: www.yit.fi