Alpiq Engineering Services has confirmed that it will be taken over by Bouygues and Colas Rail in a transaction worth 850mn Swiss francs (€724mn).
The acquisition fits French construction giant Bouygues's growth plans for Europe by strengthening its position in Switzerland, where Alpiq delivers a variety of services in construction and in energy, industrial and transport infrastructures.
Colas says that Alpiq's expertise in railway power supply will supplement its portfolio and strengthen its leadership in the rail sector, where it employs 5,300 workers in 22 locations worldwide.
Alpiq Engineering Services employs around 7,650 people and reported sales of approximately 1.7bn Swiss francs in 2017, chiefly generated in Switzerland (57%), Germany (24%) and Italy (12%). Last year it confirmed it was looking for a buyer after recording losses in its dam operations.
"Through the combination of our skills and the complementary nature of our businesses, this acquisition establishes Bouygues Construction as a benchmark player in energy and services in Europe," said its Chief Executive Philippe Bonnave.
Hervé Le Bouc, Chief Executive of Colas, added: "This acquisition will enable Colas Rail to develop in the Swiss and Italian markets in particular, and to strengthen its presence in Central Europe and the United Kingdom."