Italy's Salini Impregilo To Acquire Lane Industries Inc.

Nov 12, 2015, 13:40 ET from Salini Impregilo

MILAN, Nov. 12, 2015 /PRNewswire/ -- Salini Impregilo's board approved yesterday an agreement for Salini Impregilo to acquire 100% of the share capital of Lane Industries Inc.

Lane is the top highway contractor and top private asphalt producer in the US. It is a family-owned business specialized in heavy civil construction and the transportation infrastructure sector with approx. $1.5 billion turnover.

The company has three divisions: asphalt production, road projects and other infrastructure projects, in both domestic and international markets.

Thanks to its strong track record, technical experience and the strategic location of its materials plants, Lane is participating in some of the largest and most complex projects in the US, such as a highway in Florida, the I-4 Ultimate, a $2.3 billion contract, in which Lane has a 30% stake.

The acquisition represents a further step by Salini Impregilo to expand in the large and attractive US infrastructure market. It will enable the Group to create a powerful platform to seize opportunities in a market where having a local presence and a local team of managers is a must to succeed.

With Lane, Salini Impregilo will be able to access a much larger pool of projects. The US transportation infrastructure market – valued at $130 billion in 2014 - is expected to grow faster than GDP on the back of a recovering economy, a positive demographic trend and the pent-up demand for upgrades and expansions of existing infrastructure after years of underinvestment. Lane will bring significant growth opportunities, while increasing the diversification of the portfolio by improving the balance of its exposure between developed and developing markets.

The value of the transaction is approx. $406 million net of adjustments that will be defined at closing and takes into account the value of Lane's stakes in JVs. Salini Impregilo will finance this transaction with cash, existing credit lines and new financing available at closing. The acquisition is expected to close in January 2016, subject to the approval of Lane's shareholders and the satisfaction of other customary conditions, including compliance with US antitrust requirements.

Pietro Salini, Salini Impregilo CEO, commented: "The Lane acquisition will be a key milestone in the development of our company. After the completion of the merger between Salini and Impregilo in January 2014, we demonstrated our ability to integrate businesses, to create value for our shareholders and to achieve our business plan target, profit and enhancement of human resources. Our Group already operates in the US with its subsidiary S.A. Healy, and has already developed projects such as the metro in San Francisco, and Lake Mead in Nevada. With Lane, we bring our group to a more ambitious level as we reach a truly global scale while preserving a sound financial structure. We will be at home in more than 50 countries with a workforce of more than 35,000 employees. We will have a leadership position in the US, in Europe as well as in high-growth regions. We will be able to compete globally and seize the best opportunities on a risk-adjusted basis. We will achieve all of this thanks to the acquisition of a great US company that shares many things in common with Salini Impregilo. I look forward to welcoming into our group the talented Lane management team and its employees so we can build together a solid and profitable future".

Safe Harbour Statement

Certain statements in this press release may constitute forward-looking statements that concern risks, uncertainties and other factors that could lead to results differing materially from what had been anticipated. Such risks and uncertainties include, but are not limited to, the Group's ability to confront the effects of the uncertain global economic outlook; its ability to acquire and integrate new businesses; its ability to win new contracts; its ability to manage relations with clients; its ability to achieve and manage growth; its ability to manage fluctuations in foreign exchange rates and changes in local conditions; its ability to resolve computer system problems; its ability to manage credit, insurance and inventory risks; its ability to adapt to changes to tax regimes as well as other political, economic and technological factors and other risks and uncertainties.

Salini Impregilo is a global leading player in the construction of major infrastructures, specializing in the Hydro and Dams, where the Group is the world's leader, as well as in the Railways, Metro systems, Roads & Motorways. The Group has been active for more than 100 years and today it operates in more than 50 countries, across five continents, with more than 30,000 employees. At the end of 2014 its turnover was €4.2 billion with a backlog of €32 billion. Salini Impregilo Group is headquartered in Italy and is listed at the Milan Stock Exchange (Borsa Italiana: SAL; Reuters: SALI.MI; Bloomberg: SAL.IM). For more information, please visit our website at www.salini-impregilo.com.

For further information:
Head of Corporate Identity & Communication
Luigi Vianello       
Tel. +39 06 6776 26 595             
email: l.vianello@salini-impregilo.com   

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SOURCE Salini Impregilo



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