Ballast Nedam advised on sale of its offshore business to Van Oord by NIBC

Client

Ballast Nedam is one of the largest construction companies in the Netherlands. Founded in 1877 as the Amsterdamse Ballast Maatschappij, Ballast Nedam’s current strategic focus is on the successful acquisition and execution of integrated projects in the fields of housing, mobility, energy and nature, both in its home country the Netherlands and internationally. The company is targeting future expansion in niche markets and projects in which its expert knowledge and skills enable it to add value for its clients. Ballast Nedam shares are listed on Amsterdam’s NYSE Euronext stock exchange.

Case

Following the continuation of the downturn in the construction market in 2013 and the poor outlook in many sectors of the construction industry for the foreseeable future, in early 2014 Ballast Nedam announced a refinancing operation and major reorganisation to strengthen its balance sheet. Following a successful rights issue and a new loan package from its banks, the company began the transformation of its regional construction companies into a construction company with integrated operations, and the disposal of several supply and specialised companies that no longer contribute to Ballast Nedam’s strategic proposition. Although Ballast Nedam Offshore was not among the operations initially earmarked for disposal, in early 2014 Ballast Nedam asked NIBC to examine the strategic options for the offshore business.

Solution

NIBC’s M&A and Infrastructure & Renewables (I&R) began assisting Ballast Nedam with an assessment of these strategic options for its offshore wind activities in early 2014. Ballast Nedam Offshore had developed into a leading market player in the young offshore wind industry. The company provides cost-effective foundations for offshore wind farms, offering engineering, procurement, contracting and installation (EPCI) services. Since Ballast Nedam Offshore was involved in designing and building the first Dutch offshore wind farm in Egmond aan Zee in 2006 it has yielded positive results.

After careful consideration of a number of options, Ballast Nedam and NIBC concluded that the sale of Ballast Nedam Offshore – at the right price – was the best option for the company. In October, Ballast Nedam announced that the disposal of its offshore wind activities would be included in the company’s broader disposal program, and that it had asked NIBC to manage the sale process. Following a careful evaluation of the indicative offers, Ballast Nedam reached agreement with Van Oord on the sale, subject to approval from the competition authorities. 

”The transaction was executed within a very short time and comes at a decisive moment for Ballast Nedam. It also represents a substantial book profit for our client,” says Annemiek Hofland, Managing Director and senior M&A adviser at NIBC Corporate Banking, adding: “The deal includes all employees involved in the offshore wind (EPCI) activities, the ‘Svanen’ Heavy Lift Vessel and the contract for the Westermeerwind project in the IJsselmeer.”

“Ballast Nedam Offshore has been among Europe’s front-runners in the installation of offshore wind farms and has installed over 550 foundations. This deal further strengthens NIBC’s advisory position in The Netherlands”, adds Maarten van Bon, Associate Director at NIBC Infrastructure & Renewables.