French construction group Vinci has continued its international expansion drive by buying New Zealand contractor HEB Construction for an undisclosed sum.
HEB is predominantly a civil engineering and infrastructure company and undertakes hydraulic engineering, roadworks, earthworks and port construction. It had a turnover of $260m in 2014.
Vinci’s acquisition strategy is intended to give it a position in high-growth markets. In the case of New Zealand, GDP is expected to increase by more than 3% in 2014 and the construction and infrastructure sectors are set to benefit from that growth.
Philippe Chavent, chairman of Vinci Construction International Network, said: "HEB Construction’s fundamentals form an excellent fit with those of Vinci, and its new projects reflect its vitality.
"One good example is the contract notification in April this year to build a 27km four-lane urban motorway in Wellington.
"The project, in which HEB is participating as a member of a joint venture, has a value of more than $560m and is one of the island’s largest infrastructure projects."
Vinci and Bouygues have recently won a contract for a $300m extension of the Cairo metro (pictured).