SGS and FCC are pleased to announce the signing of an agreement by which SGS will acquire the vehicle inspection businesses in Spain and Argentina of General de Servicios ITV (Inspección Técnica de Vehículos) SA, a subsidiary of FCC (Fomento de Construcciones y Contratas SA), for Euro 180 million. The transaction is expected to be completed by the end of the year following clearance from the relevant competition and governmental authorities.
ITV currently runs 43 vehicle inspection centres in Spain spread across 6 regions: Aragon, Canary Islands, Madrid, Valencia, Castile-La Mancha and the Balearic Islands. ITV Spain employs 660 staff members and executes more than 1.500.000 vehicle inspections each year.
In Argentina, ITV operates 32 vehicle inspection centres in the provinces of Buenos Aires and Cordoba. ITV Argentina employs 173 staff members and executes more than 900.000 inspections each year.
For 2010, ITV estimated consolidated revenues will amount to Euro 64 million.
With this acquisition, SGS establishes a significant position in the Spanish market and further enhances its position in Argentina, in line with the strategic objectives of its Automotive Services division.
"We are delighted with this acquisition, this is an unique opportunity to acquire a high quality operation with both strong financials and an excellent management team" commented Chris Kirk, CEO of SGS. "The statutory vehicle inspection business is an important component of our growth plan and we welcome this opportunity to strengthen our presence in both Western Europe and South America."
For FCC the deal is coherent with its policy of managing its business portfolio more dynamically in order to continue building up its competitive position in the markets and sectors where it is a leader. FCC's approach is to leverage its diversification (in terms of both industries and regions). The transaction is also a step towards the Group's objective of divesting non-strategic assets in order to strengthen its balance sheet and generate resources to focus in citizen service areas: environmental services, transport infrastructure and renewable energies.
FCC was advised by BBVA and Morgan Stanley.
For further information, please contact:
Jean-Luc de Buman
Communications & IR
1 place des Alpes
CH - 1211 Geneva 1
t: (+41-22) 739 95 93
f: (+41-22) 739 98 61
The SGS Group is the global leader and innovator in inspection, verification, testing and certification services. Founded in 1878, SGS is recognised as the global benchmark in quality and integrity. With 59,000 employees, SGS operates a network of over 1,000 offices and laboratories around the world.