Construction and HVAC Businesses in Portugal

Industry Overview

The civil construction sector in Portugal is expected to continue growing despite facing several constraints in 2022, such as rising material prices and labor costs. The construction increased by 3.7% in 2022, and it’s predicted to grow between 1.5% and 4.5% in 2023. Key indicators evolved positively in 2022:

• Number of licensed accommodations in new constructions increased by 5.4%
• Amount of new housing credit granted until October increased by 7.6%
• Median value of housing for bank valuation purposes increased by 13.9% in November compared to the same period last year.
• Family home transactions in the first 9 months of 2022 increased by 8% in number and 22.9% in value.

Location

North-center of Portugal

Business Description

The company is a national reference in the engineering and construction sector, covering a wide range of specialized services.
With four decades of experience in the market, it has stood out for its professionalism, technical excellence, and commitment to offering customized solutions.

Financial Summary

• 40 years of experience
• Twenty-three large-scale projects
• 2x growth - 2024 pipeline
• 15% ROE
• 4% ROA
• 258k€ FCFF
• 2.4m€ total equity
• 9.3m€ total assets
  

Investment Rationale

• 40 years of acknowledgement - The brand has existed in Portugal for 40 years, so the target segment already has an association of quality and experience with the brand.
• Market leader strategy - the company has been involved in many of the largest projects throughout the country in the recent past, being part of the restricted group of major civil construction players in Portugal.
• Portfolio 360º solutions - Synergies among the different companies in the group allows that, when winning a project, all solutions from any of the three companies can be put forth.
• Autonomous transactable asset - The current partners have minimal involvement in the day-to-day management of the businesses, making the assets fully transferable to another equally qualified management team.
• Two times growth - The pipeline of projects won by the company for 2024 allows for a near doubling of the group’s turnover.

Transaction Information

Partial sale.