Hidroelectrica announces a transaction for the takeover of UCM Resita (UCMR), specialises in manufacturing and trading of hydro aggregates and ancillary equipment, as well as in providing maintenance services and specialized technical assistance in the energy sector. The transaction will be completed following the fulfilment of the condition’s precedent, which includes, among others, the approval by the shareholders of Hidroelectrica’s GMS. The total price for the transfer of ownership of the business and all assets about the transaction is 67.8 million RON (13.6 million euros).
“The initialling of the documents is another step towards bringing into our company’s portfolio a unit whose tradition exceeds 250 years. The know-how and experience of UCMR, a company that has contributed over time to equipping approx. 80 percent of Hidroelectrica’s power plants, will open up new opportunities through the integration with Hidroserv. We want to create a company with top performance, able to provide services not only for the parent company but to be competitive in the national and international markets. We believe there is potential, we believe in sustainable growth, and we act in this sense as a team,” said Karoly Borbely, president of the Hidroelectrica Directorate.
The transaction aims to secure UCMR’s asset base, unique in Southeastern Europe, with an essential role in streamlining the maintenance and refurbishment activity, improving the availability of hydropower units, for ensuring more efficient management of the electricity generation assets owned by Hidroelectrica, thus achieving the consolidation of the maintenance function at group level.
The transaction will allow Hidroelectrica to hold, within the Group, the equipment and the know-how necessary for implementing the investment program in its portfolio. Consequently, it will benefit from the integration of UCMR’s engineering design and equipment production capabilities with the assembly and maintenance capabilities held by Hidroserv, with a positive impact on cost control and the duration of modernization, refurbishment, and maintenance projects.
