STRABAG expands to Australia

European construction group STRABAG is pursuing plans to expand to Australia with the acquisition of Georgiou Group. The parties have agreed on the key terms of a purchase by STRABAG, and the signing of the final purchase agreement is expected to take place soon, probably before the end of this year. Approval from Australia’s Foreign Investment Review Board (FIRB) and the STRABAG Supervisory Board is still pending.

The Perth-based company, a specialist in road and infrastructure construction with 875 employees, generates an annual output of around A$ 1.3 billion, the equivalent of € 787 million. The purchase price, which has yet to be finalised, will be in the low three-digit million euro range. The transaction will be financed through existing cash and cash equivalents.

“Our core markets in Europe are proving to be a stable source of earnings despite the currently difficult conditions. To ensure a robust position in the long term, however, it is essential that we also diversify our portfolio by expanding outside of Europe. Australia fulfils all the key criteria that are important to us in this regard: a sound financial budget, legal certainty and high standards of business compliance,” says Klemens Haselsteiner, CEO of STRABAG.

The STRABAG Group has already been active in Australia in the past, having worked on individual projects such as the Alkimos wastewater treatment project and the seawater intake and outfall project in Perth. With this transaction, STRABAG now aims to establish a permanent business presence in the country. Georgiou Group is primarily active in road and infrastructure construction. Current projects include a bridge over the Fitzroy River in Western Australia and The Northern Road in New South Wales.

2 continents – 1 philosophy
Established in 1977, the company was gradually transformed into a successful national construction group led by the Georgiou family. 

The current CEO, Gary Georgiou, who is not related to the founding family, will continue to lead the company.

Klemens Haselsteiner: “In our many reciprocal visits, one thing became clear: Georgiou Group represents a robust enterprise not only in operating and financial terms; what impressed us even more was the cultural fit across continental boundaries. We share an appreciation for teamwork, effective risk management and the right balance between operating business and central functions, the quality of the services and the already profitable growth. What we have here are two family businesses that are growing together, and as we learn from each other, I am convinced that we will become even stronger than before.”

“As part of the STRABAG Group, Georgiou will benefit from belonging to a large, highly developed multinational company, giving us financial backing and access to proven technical expertise and experience that goes beyond our current resources. This extension of capabilities offers immense value and opportunities not only for Georgiou as a company, but also for our employees and the Australian construction industry as a whole,” says Gary Georgiou, CEO of Georgiou Group.