Published: 2013-09-26 08:50:00 CEST
City Service SE
Notification on material event

City Service group expands to Spain

Vilnius, Lithuania, 2013-09-26 08:50 CEST (GLOBE NEWSWIRE) -- On September 25, AB City Service has acquired a company active in Spain, Aldesa Servicios y Mantenimiento S.A. (enterprise code A-84659614, headquarters registered at Bahia de Pollensa 13, Madrid), operating under Concentra trade-mark. AB City service acquired 100% of company shares and as a part of the transaction bought loans from former shareholders. Total price paid for the loans and shares of the company amounted to EUR 7,345 million. As of 31 July 2013 company shareholders‘ equity and loans provided by the former shareholders book value amounted to EUR 7,5 million (based on unaudited accounts). 

The acquired company provides commercial facility management and related services. The company holds offices throughout Spain, with over 4.8 million sq. meters of facilities under its management, with 1600 employees. The company provides services in Central (Madrid), Southern (Seville), Eastern (Valencia) and Northern (Barcelona) regions of Spain. 22% of IBEX 35 companies are clients of Concentra, covering wide scope from telecommunications, office, energy to logistic sectors. 

Concentra gets into TOP30 facility management companies in Spain. Forecasted for 2013 revenue is EUR 49 million, and EBIDTA is EUR 1.9 million. 

Facility management market in Spain accounts for EUR 17 billion. It is 5th largest market in Europe. 

After economic downturn first signs of recovery are distinct in Spain. We think it is a good time for acquisitions of excellent companies that have survived economic downturn.  Prices are appealing, as large Spanish holdings withdraw from facility management which is not their core business, stated Jonas Janukėnas, General Director of AB City Service. 

In recent years we invested in business management systems, which allowed us to reach good results and quite a high level in comparison with other companies of our field not only in Eastern and Central, but also in Western Europe. We feel ready for broader geographic expansion, as we see perspective both in Spain and other countries, J.Janukėnas highlighted. 

Company‘s assets and liabilities as of July 31, 2013, according to unaudited information: 

  (EUR, million)
Long-term tangible assets 0.2
Accounts receivable 15.6
Other current assets 0.5
Cash 2.4
Total assets 18.7
   
Shareholders‘ equity and loans from shareholders 7.5
Accounts payable and other current liabilities 11.2
Total shareholders‘ equity and liabilities 18.7

In accordance with Spain government‘s plan for municipalities and autonomic units liabilities reduction (Plan especial pago a proveedores) accounts receivable of the company  shall  decrease by EUR 3.2 million by the end of year.

   

 

         Vilius Mackonis,
         Head of Communication
         +370 5 239 4900