21 Dec 2009

Salini Costruttori S.p.A. and Todini Finanziaria S.p.A. have signed an agreement on the basis of which Salini acquires 60% of Todini Costruzioni Generali S.p.A.’s capital, establishing a Group with a turnover of over € 1,2 billion, works in hand for € 8 billion and 17 thousand employees worldwide.

This initiative is set out to give birth to the third Italian Group in the infrastructure sector and create one of the leading companies in Europe.

The advisors of the operation were Banca IMI and BNP Paribas, who ensured their decisive support for this initiative as well as for the strategic positioning of the new Group onto the international markets.

Reflecting the vitality of the Italian model of an evolved family-based business, the new Group draws its strength from its entrepreneurial history as well as from the values shared by both companies, where ownership has led business operations for many generations, providing added value to their management and to their human resources.

In the immediate future, the two companies will maintain each their own distinct personality, continuing to take advantage of the entrepreneurial skills of its shareholders and managers. Luisa Todini will be Chairman of Todini Costruzioni Generali S.p.A and will be a member of the Borad of Directors of  Salini Costruttori S.p.A.

This synergy will not give rise to overlaps or structural redundancy in terms of geography and structure of each of the companies’ turnover.  The new Group, which will compete with top international players, has a great potential for development, both in respect to type of works carried out – which range from hydroelectric systems, to underground railways, civil engineering, roadwork and other infrastructures - and to its capacity of international markets penetration.

“We will combine our skills and knowledge with Todini,” said Pietro Salini, Managing Director of Salini Costruttori S.p.A., "to become even more competitive on the international market for large scale construction works, where size and financial solidity are particularly important to face the increased value of projects”.

“This operation”, stated Luisa Todini, “witnesses the will of two Italian families - which have always been involved in the construction market and have a great international vocation - to continue to invest in Italy in order to overcome the sector’s fragmentation.”
“The great support received from the banking system was fundamental" continues Luisa Todini, “in particular the one of Intesa Sanpaolo and BNL - BNP Paribas Groups which, together with Unicredit and MPS, have always been close to our companies”.

As at today, other than Italy, Todini and Salini operate in 40 other countries and in four continents (particularly Africa, Eastern Europe, the Middle East- Central Asia and Latin America) where together they carry out approximately 60% of their turnover and where the same share of their works in hand is located.

International vocation is mainly expressed by the Group through its presence with permanent structures in the countries where it operates; branch offices and local companies which are strongly present in their reference markets so to harness their strategic potential and take advantage of the business opportunities.

In 2009, the Group's overall consolidated value of production is expected to equal over € 1.2 billion, before reaching € 1.4 billion in 2010, € 1.5 billion in 2011, and € 1.7 billion in 2012.