Construction firm Erbud has announced plans to acquire local and international competitors over the course of 2008. In response to the soaring value of the Polish construction market, the company is expanding its activity, particularly with regard to road infrastructure projects.
Dariusz Grzeszczak, a member of the board at Erbud, has confirmed the company is currently in advanced negotiations with two engineering firms specializing in road construction.
"We expect the first couple of transactions to be completed in the first or second quarter of 2008," said Grzeszczak.
The names of the companies have yet to be revealed, but Grzeszczak did confirm that their average turnover is in the range of zł.50-100 million. Grzeszczak stated that all the details concerning the acquired firms will be revealed directly after the transactions have been finalized.
The company expects the new deals will secure it a position among the top 10 domestic construction companies. However, it is also looking to expand to markets abroad as Poland approaches saturation.
"We are currently surveying the markets in search of potential acquisitions and plan to make the transactions once we've finalized our domestic investments," said Grzeszczak.
According to its latest financial prognosis, Erbud executives expect a 60-percent increase in revenues for 2008 over 2007's results. The company's 2008 sales revenues are estimated at close to zł.1 billion, compared with some zł.690 million in 2007. Operational profit is expected to reach zł.62.5 million, giving Erbud a 6.7-percent profitability rating - up from over zł.31 million and 4.52 percent last year, respectively.
