City Service Jumps on Purchase of Spanish Company: Vilnius MoverBryan Bradley
City Service AB, the biggest Baltic building maintenance company, rose to a five-week high after saying it bought a company in Spain and plans to expand further beyond central and eastern Europe.
The shares rose 3.8 percent in Vilnius to 1.93 euros, the highest since Aug. 19, valuing the company at 61 million euros ($82 million). Volume of 76,703 shares was the most in five months and almost nine times the three-month daily average, according to data compiled by Bloomberg.
City Service paid 7.3 million euros for all the shares of Madrid-based Aldesa Servicios y Mantenimiento SA and loans from former shareholders, the company said in a regulatory statement today. Based in Vilnius, the company already operates in Lithuania, Poland, Latvia, Russia and Ukraine.
“The first signs of recovery are evident in Spain and we think it is a good time for acquisitions,” General Director Jonas Janukenas said in the statement. “We feel ready for broader geographic expansion and we see perspective both in Spain and other countries.”
Aldesa Servicios y Mantenimiento, operating under the Concentra trademark, manages 4.8 million square meters of commercial facilities throughout Spain with unaudited total assets of 18.7 million euros at July 31 and forecasted 2013 revenue of 49 million euros, City Service said.