BAM buys Dutch directional drilling firm for €45 million
BAM Group is acquiring a 40% stake in Dutch horizontal directional drilling firm VLST for €45 million, expected to close in Q1 2027. VLST operates 19 rigs, with €60 million revenue and 18% EBITDA margin. BAM also plans to buy A.Hak for €504 million, which has a €1 billion order backlog. Both deals align with BAM's infrastructure growth strategy.
How this was made
The 30-second read
Why it matters
The deal signals BAM's aggressive expansion in underground infrastructure, likely supporting a positive re‑rating by analysts.
Market read
First‑report of a strategic M&A transaction that could influence BAM's stock and sector peers.
What to watch
Integration risk and the need for additional capital to fully fund the remaining 60% of VLST could affect execution.
Background
Royal BAM Group disclosed a new acquisition to broaden its HDD capabilities, complementing a larger pending purchase of A.Hak.
Ticker impact
BAM announced a €45 million purchase of a 40% stake in Dutch HDD specialist VLST, a new M&A transaction.
potential modest upside as investors price in expanded service offering and future earnings contribution
First‑report of a strategic stake purchase; market typically rewards growth‑oriented acquisitions, especially when the target adds complementary assets.
Market effects
strengthens BAM's position in the European construction and underground infrastructure sector
adds to activity in the Dutch construction market, may boost related peers
limited to construction and infrastructure investors
Counterpoint
The €45 million price may be high relative to VLST's earnings, potentially diluting BAM's margins in the short term.
Key entities
- companyRoyal BAM Group
European construction firm expanding via acquisitions.
- companyVan Leeuwen Sleufloze Technieken (VLST)
Dutch horizontal directional drilling specialist.
