February 03, 2023
Webuild: signed the contract to acquire Clough assets
Combined group to rank among biggest players in Australia
Acquired more than €4 billion (AU$ 6 billion) of order backlog and guaranteed 1,100 jobs
The acquisition perimeter includes, in addition to Snowy 2.0, Inland Rail stakes, other strategic infrastructure projects, under new accretive terms, such as:
Waitsia gas project, Lombrum naval base, Tallawarra power plant
projects for which Clough is preferred bidder, such as Perdaman’s Ceres urea plant
Acquisition boosts Webuild presence in Australia with scale, expertise, workforce
Webuild reaches a total order backlog in Australia, including preferred bidder projects, of more than €12 billion (AU$ 18.5 billion) and about 3,000 employees
Webuild and Deloitte administrators working with stakeholders to secure creditor approval by mid-February
MILAN, February 3, 2023 - Webuild announces it has signed the contract with the Deloitte Administrators of Clough Limited (Clough) in Australia to acquire Clough assets. Following the disclosure on December 14, 2022 and January 19, 2023, the final acquisition perimeter comprises: i) Clough’s organisation, including offices, trademarks, credentials, business references, senior management and office personnel and, ii) more than €4 billion worth of projects in backlog (as of end 2022), including the related project workforce.
The integration of Webuild and Clough, that guarantees the continuity of Clough’s projects and ongoing employment for 1,100 Clough employees, will create a Group that ranks among the largest and oldest in Australia. The current projects included in the transaction are amongst the most important infrastructure projects in Australia and Papua New Guinea, and the agreement will allow the delivery for all levels of government, local communities and businesses involved. The transaction also ensures subcontractors and suppliers contracted to projects within the perimeter will be paid to complete their contracted works.
The following is a breakdown of the perimeter of the assets being acquired:
The transaction would enable Webuild to:
- strengthen its organizational, engineering and workforce structure in Australia, instrumental to the execution of its order backlog and commercial plan. Webuild is set to benefit from a booming market with hundreds of billions of investments expected in the coming years;
- acquire a strong and structured local presence with more than 100 years’ long history, deep Australian roots and tradition;
- benefit from scale and significant synergies by enhancing Clough's central resources specialized in commercial planning and business development, bid preparation, human resources management, procurement management, administration, finance and control;
- expand and diversify Webuild’s business by leveraging Clough’s competencies, capabilities, good market positioning and strong reputation in sectors such as energy, installations, and defence.
The total value of the transaction is equal to approximately AU$35.9 million (€23.4 million). The completion of the acquisition remains subject to obtaining certain consents from third parties involved in the operation, including the approval at the second meeting of creditors expected to be held by mid-February 2023.
Australia is a core market for Webuild, where it has potential construction contracts estimated in excess of €300 billion for the 2022-2025 period.
Webuild is continuing to expand its operations in Australia. It will take part in the construction of the project that connect the city to the new airport. It is working on the , the missing section of Melbourne’s beltway. It is part of the consortium that is the preferred bidder for the construction of a section of , designed to improve freight transport between Brisbane and Melbourne. In the Snowy Mountains, the Group is working on , the largest hydropower project in the country.
Founded in Perth in 1919, Clough is a pioneer in the country’s construction industry. Landmark projects include the National Mutual Building, the first high-rise in Perth, and the Graham Farmer Freeway, the first major underground freeway tunnel in Western Australia.
The integration of the two groups brings Webuild to an overall order backlog in Australia of over €12 billion, including projects for which they are preferred bidders, and around 3,000 employees.