Strabag dials into EUR 1bn facility management unit

Austrian construction company Strabag has agreed to buy Deutsche Telekom's facility management unit. Deutsche Telekom Immobilien und Service (DeTeImmobilien) employs more than 6,000 people - 5,600 in Germany - and it generated revenues of about EUR 1bn in the 2007 financial year. DeTeImmobilien main customer is Deutsche Telekom. Both sides agreed not to disclose the investment volume.

Strabag and Deutsche Telekom also signed a service agreement based on market and industry benchmarks for an initial period of ten years.

Strabag CEO Hans Peter Haselsteiner said: 'With the acquisition of DeTeImmobilien, we are pursuing our strategy of extending the competencies in the area of construction-related services. The construction business fluctuates over the course of the year and with the economic cycle. Facility management, with its characteristically longer-term contracts, helps to smooth out seasonal and cyclical fluctuations.'

'Until now, Strabag has been the number one in Germany only in construction. As of today, we also play a leading role in facility management. We will use DeTeImmobilien’s know-how to achieve a leading European position in this segment as well.'

Strabag is one of Europe's leading construction group, with about 63,000 employees. The company has forecast a construction output volume of EUR 12.4bn in the 2008 financial year.