Information on the Target

Viabuild (www.viabuild.be) is a prominent multidisciplinary contractor in Belgium, projected to generate approximately €185 million in revenue in 2024. The company specializes in a comprehensive range of public and private construction projects. Established in 2011 from the merger of two family-owned construction firms, Verhaeren NV and Kembo NV (owned by the Deckx family), Viabuild has rapidly emerged as a major player in infrastructure construction, employing over 500 dedicated professionals.

Viabuild places a strong emphasis on delivering high-quality outcomes, maintaining stringent control over its production processes with the aid of two in-house asphalt plants located in Grimbergen and Haren, a concrete plant in Neder-Over-Heembeek, and a temporary soil storage site. The company is committed to being the preferred partner for large and complex multidisciplinary projects, particularly focusing on Public-Private Partnerships (PPP). Furthermore, Viabuild is expanding its offerings to include comprehensive turnkey solutions for data center construction, enhancing its competitive edge in the construction sector.

Industry Overview in Belgium

The construction sector in Belgium is a vital component of the nation's economy, driven by both public and private investments. With a growing emphasis on infrastructure development and modernization, the industry has seen a steady increase in demand for construction services, particularly in roadworks, urban development, and renewable energy projects. The government's commitment to sustainable development has further fueled the growth of public-private partnerships, allowing for innovative financing and execution of large-scale projects.

In recent years, Belgium's construction industry has also been influenced by the increasing adoption of digital technologies and sustainable practices. Companies are investing in advanced construction techniques, such as Building Information Modeling (BIM) and modular construction, which enhance efficiency, reduce waste, and improve project delivery timelines. Additionally, the push towards reducing carbon emissions and energy consumption has led to a surge in demand for green building solutions.

As Belgium faces challenges such as labor shortages and rising material costs, collaboration within the industry has become essential. Partnerships between contractors, suppliers, and other stakeholders are crucial for addressing these challenges while ensuring that projects are completed on time and within budget. The ongoing recovery from the COVID-19 pandemic has also prompted an influx of investments in the construction sector, positioning it for significant growth in the coming years.

The Rationale Behind the Deal

The strategic sale of the Verhaeren family's 50% stake in Viabuild to Square Group is designed to enhance the company's operational capabilities and broaden its market reach. Square Group is recognized for its expertise in earthworks, remediation, and recycling, and its acquisition of a stake in Viabuild aligns with its strategic goals of expanding its footprint in the construction industry.

This collaboration enables both companies to leverage their complementary strengths, thereby delivering greater value across the construction sector. The partnership aims to enhance service offerings, improve project outcomes, and reinforce their positions in the competitive landscape of Belgium's construction market.

Information About the Investor

Square Group is a distinguished Belgian company specializing in earthworks, remediation, and recycling services. With a robust track record in the construction industry, Square Group prides itself on its commitment to sustainability and innovation. The company’s strategic initiatives focus on optimizing resources, minimizing environmental impact, and enhancing community engagement through its projects.

By acquiring a stake in Viabuild, Square Group seeks to create synergies that will strengthen its operational capabilities and diversify its portfolio. This investment represents a significant step towards expanding its influence within the Belgian construction industry, positioning the firm for long-term growth and success.

View of Dealert

This transaction appears to be a strong investment opportunity for both parties involved. For Square Group, acquiring a stake in Viabuild not only adds a reputable contractor to its portfolio but also strengthens its capabilities in undertaking complex projects prevalent in the Belgian construction market. The merger provides an opportunity to tap into Viabuild's extensive experience and current market positioning.

Viabuild, on the other hand, benefits from Square Group's capabilities in earthworks and remediation, which could enhance project execution efficiency and broaden its service offerings. This collaboration could lead to innovative approaches in project delivery, potentially attracting new clients and larger projects, particularly in the realm of Public-Private Partnerships.

The supportive regulatory environment for Public-Private Partnerships in Belgium, combined with the increasing demand for infrastructure projects, indicates that this partnership is well-timed. If managed effectively, this deal could yield substantial returns for both Viabuild and Square Group, positioning them favorably amidst industry challenges and opportunities.

In conclusion, as the construction industry continues to evolve with technological advancements and sustainability efforts, this strategic alliance could serve as a catalyst for growth, making it a promising investment for the future.

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