BAM Strengthens Dutch Energy and Water Infrastructure Business with A.Hak Acquisition
Royal BAM Group has agreed to acquire A.Hak, a leading Dutch underground infrastructure company, in a transaction designed to strengthen BAM’s position in the growing energy and water infrastructure markets. The acquisition represents a significant step in BAM’s growth strategy and will expand its capabilities in essential infrastructure services across the Netherlands and other European markets.
A.Hak specialises in underground infrastructure for electricity, water, gas and heat networks. The company is expected to generate approximately €425 million in revenue in 2026, with an adjusted EBITDA margin of around 10%. Following the acquisition, BAM expects its exposure to the fast-growing energy transition market to exceed 20% of group revenue.
The transaction values A.Hak at an enterprise value of €504 million. BAM has secured financing through a combination of existing cash resources and a committed bridge loan facility provided by Rabobank, ING Bank and ABN AMRO.
The acquisition is expected to close in the first quarter of 2027, subject to customary closing conditions, including regulatory approvals and employee consultation.
Strengthening BAM’s Energy and Water Infrastructure Capabilities
The acquisition will expand BAM’s existing infrastructure operations by combining its established energy distribution activities and civil engineering capabilities with A.Hak’s specialist expertise in transmission pipelines and trenchless construction techniques.
A.Hak has more than 60 years of experience delivering underground infrastructure projects. Its services cover distribution networks, transmission pipelines, high-voltage and medium-voltage cable infrastructure, and specialist trenchless techniques used to install or replace underground utilities.
These capabilities complement BAM’s existing operations and create opportunities for both businesses to deliver a wider range of integrated infrastructure solutions. The combined expertise is expected to support customers undertaking complex energy and water projects across different regions.
Ruud Joosten, chief executive officer of Royal BAM Group, described the acquisition as a major step in the company’s growth strategy. He highlighted the complementary technical capabilities, geographical coverage and customer relationships that A.Hak brings to the group.
Joosten also emphasised the importance of A.Hak’s specialist expertise in supporting BAM’s activities in the United Kingdom, where investment in the energy transition and essential water infrastructure is increasing.
BAM’s established presence in the UK could provide opportunities to expand A.Hak’s existing activities and introduce its technical capabilities to a broader customer base.
Long-Term Contracts Provide Revenue Visibility
A.Hak’s established customer relationships and long-term framework agreements are important elements of the acquisition. The company primarily serves utility companies and operators responsible for energy and water transmission and distribution networks.
More than half of A.Hak’s current revenue is generated through long-term framework agreements. The company also has an order backlog of approximately €1.0 billion for the 2027–2031 period.
According to BAM, more than 75% of A.Hak’s expected revenue between 2027 and 2031 is supported by existing contracts and anticipated renewals. This provides a degree of revenue visibility and creates a foundation for future business development.
The acquisition is expected to contribute positively to BAM’s free cash flow immediately following completion. A.Hak’s adjusted EBITDA is projected to increase to between €65 million and €75 million in the medium term.
These financial expectations reflect the anticipated contribution of A.Hak’s existing operations and potential growth opportunities. The final results will depend on factors such as contract execution, market conditions, operating costs and the integration of the businesses.
Growing Demand for Underground Infrastructure
Investment in underground infrastructure is increasing as countries modernise electricity networks, strengthen water systems and adapt to changing energy requirements.
In the Netherlands, electricity and gas network operators plan to invest approximately €235 billion between 2026 and 2040. These investments are intended to support the development and expansion of essential networks as energy demand, electrification and renewable energy integration continue to shape infrastructure requirements.
Water infrastructure is also becoming increasingly important. Investment is needed to improve network capacity and resilience while helping manage challenges associated with drought, excess water and changing environmental conditions.
These developments are creating opportunities for specialist infrastructure contractors with the expertise and workforce required to deliver complex underground projects.
The UK market offers additional potential, with investment in electricity, water and gas infrastructure supporting demand for technical construction services. BAM expects A.Hak’s capabilities to complement its existing operations and help the group pursue a broader range of projects in this market.
By combining their experience and resources, BAM and A.Hak aim to strengthen their ability to deliver essential infrastructure while responding to long-term investment requirements.
A.Hak to Retain Its Brand and Leadership
A.Hak will continue operating independently under its existing name and leadership following the acquisition. The company will retain its established market identity and customer-facing brand while becoming part of BAM’s wider infrastructure business.
Maintaining A.Hak’s identity is intended to preserve the specialist expertise, customer relationships and operational capabilities that have supported its development over more than six decades.
Henk Herremans, chief executive officer of A.Hak, said the company had established a leading position in underground infrastructure and built a strong platform for future growth.
He described BAM as a committed long-term partner that shares A.Hak’s focus on safety, quality and the energy and water transition. According to Herremans, the combination will provide greater scale, technical expertise and investment capacity while preserving the company’s people, specialist knowledge and customer focus.
He also highlighted opportunities to create new prospects for employees and customers while increasing A.Hak’s contribution to essential infrastructure development.
Supporting BAM’s Long-Term Growth Strategy
The acquisition reflects BAM’s strategy of expanding its presence in infrastructure markets supported by long-term investment needs. By adding A.Hak’s specialist services, the group aims to strengthen its position in underground energy and water networks and broaden the range of solutions available to customers.
The combination of technical expertise, established customer relationships and a substantial contract backlog is expected to support future business growth in the Netherlands and the United Kingdom.
With an enterprise value of €504 million, the transaction represents a significant investment in a sector that is central to energy security, water resilience and the transition to more sustainable infrastructure systems.
Subject to the completion of the required approvals and other customary conditions, the acquisition is expected to close in the first quarter of 2027. Once completed, A.Hak will continue operating under its own brand while contributing its specialist capabilities to BAM’s wider infrastructure ambitions.
Source Link:https://www.bam.com/
