Dutch BAM Group Plans to Acquire Underground Pipeline Network Company A.Hak for €504 Million

en.Wedoany.com Reported - On October 8, Dutch construction group Royal BAM Group reached an acquisition agreement with underground infrastructure contractor A.Hak, corresponding to an enterprise value of €504 million, with closing planned for the first quarter of 2027. A.Hak is primarily engaged in the construction of energy and water supply pipeline networks, with operations covering electricity, natural gas, district heating, and water transmission facilities. Through this transaction, BAM will acquire A.Hak's underground pipeline construction capabilities and plans to expand its business scale in the UK energy and water infrastructure market.

According to the transaction arrangements announced by BAM, the acquisition will be funded by a combination of the group's existing cash and a bridge loan committed by banks, with financing institutions including Rabobank, ING Bank, and ABN AMRO. Completion of the transaction remains subject to customary closing conditions, including regulatory approvals and consultation with employee representatives. A.Hak will retain its existing company name, management team, and independent operating model at that time.

A.Hak's business covers energy and water transmission mains, medium- and high-voltage power cable facilities, and trenchless pipeline construction, with major customers including utility companies and transmission and distribution network operators. Approximately 85% of the company's revenue comes from the Dutch market, while it also operates in the UK and Belgium. More than half of its existing contracts are in the form of long-term framework agreements, with an order backlog of approximately €1 billion for 2027–2031, of which more than 75% of expected revenue is covered by existing contracts and anticipated renewal projects.

BAM expects A.Hak to achieve revenue of approximately €425 million in 2026, with an adjusted EBITDA margin of approximately 10%. According to the group's published medium-term operating forecast, following completion of the acquisition, A.Hak's adjusted EBITDA is expected to reach €65 million to €75 million. BAM also expects that after integration is completed, revenue from businesses related to the energy transition will account for more than 20% of the group's total revenue.

The UK is one of the business expansion markets for this acquisition. A.Hak has already carried out pipeline engineering business locally, having formed a consortium with Skanska and Austria's PORR to participate in National Grid's Humber gas pipeline replacement project, which includes an approximately 5-kilometer tunnel crossing the estuary and the installation of high-pressure gas transmission pipelines. BAM plans to leverage its existing UK engineering business to apply A.Hak's transmission pipeline, power cable, and trenchless construction technologies to more energy and water infrastructure projects.