Hochtief confirms Siemens unit purchase

Hochtief AG, Germany's largest construction company, says it has signed a deal with Siemens AG to buy the facility management business of Siemens Building Technologies from January 1, 2004.

Hochtief AG designs, finances, builds, and operates large, technically demanding facilities worldwide.

No financial details of the purchase of Siemens Gebaeudemanagement und Services GmbH & Co. OHG unit have been disclosed.

The unit had sales of €200m in the last financial year to end-September 2003 and employs 1,500 workers.

The purchase comes as part of Hochtief's strategy to increase its services business, the company said.

This sale more than doubles the business volume of Hochtief's current facility management business, which has 800 employees and will post sales of more than €80m this year.

Siemens Building Technologies is one of Siemens' ailing units, struggling to reach its full year EBIT margin target of 7-9% after posting an EBIT margin of 2.7% for the financial year to end-September 2003.

Full year sales at Siemens' eighth largest unit fell to €1.4 bn last year from €1.6 bn.