By Pietro Lombardi
Vinci SA has signed an agreement to buy the energy business of Actividades de Construccion y Servicios SA for around 4.9 billion euros ($5.75 billion) in cash.
The French construction and infrastructure company said Thursday that the move aims to create a global player in energy contracting and to develop a platform for renewables projects.
Under the agreement, ACS may receive up to around EUR600 million in additional payments, depending on some milestones related to renewables.
The deal is based on an enterprise value of EUR4.2 billion, and the estimated purchase price is based on the assumption that the deal is closed by the end of the year.
Vinci will fund the deal with its cash and credit lines. It expects the acquisition to have a positive impact--in the mid- to high-single-digits--on its earnings per share from the first year after closing.
The business has around 45,000 employees and a focus on Spain and Latin America.
Vinci and ACS will also form a joint venture focused on renewables assets, in which the French company will have a 51% stake.
Write to Pietro Lombardi at email@example.com; @pietrolombard10
(END) Dow Jones Newswires