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Reway Group
M&A Activity • Mar 7, 2024
4545_rns_2024-03-07_cb830773-12ca-425d-b0b9-cac37f9ee1a9.pdf
M&A Activity
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PRESS RELEASE
REWAY GROUP: The subsidiary company Gema secures contracts worth approximately 84 million euros in the railway sector
The group strengthens its position in the railway industry, a focal point for significant national investments in network modernization.
Licciana Nardi (MS), March 7, 2024 –Reway Group S.p.A. (the "Company" or "Reway Group") (EGM: RWY), Italy's largest operator specialized in rehabilitation and maintenance of road and highway infrastructures, as well as the only organization in Italy capable of handling all the activities related to the restoration of bridges, tunnels and viaducts, announces the award of railway works valued at approximately 84 million euros by its subsidiary Gema S.p.A. ("Gema"), one of the key players in infrastructure maintenance and civil engineering in the railway sector.
The contracts awarded to Gema primarily relate to four new framework agreements assigned to Reway Group's subsidiary by Rete Ferroviaria Italiana - RFI, in collaboration with various partners. The start of work for these contracts is scheduled for the second half of 2024.
More specifically, the most significant contract involves the ordinary maintenance of RFI's stations and buildings located in the regions of Abruzzo, Umbria, Tuscany, Liguria, and Marche. Gema share of the contract is 51%, which totals approximately 26 million euros. The works have an estimated duration of about 3 years.
In addition, the second contract has a Gema share of 24.5 million euros for the routine maintenance, in collaboration with Industrial Partners, of a rail stations in the area of Rome. The works are expected to last approximately 2 years, with Gema's participation in the temporary joint venture at 49%.
Reway Group's subsidiary is also the lead company (accounting 64% share in the temporary joint venture) for a noise abatement project along RFI's railway network in Tuscany. The works, valued at about 19 million euros for Gema, will last for 2 years.
The fourth contract awarded to Gema concerns the design and execution of extraordinary maintenance works on civil railway structures located in Lazio and Sardinia. Gema, with a 30.7% share, is part of a temporary joint venture led by Salcef Group. The works, with an estimated duration of about 2 years, have a value of approximately 8.1 million euros for Gema.
In addition to these contracts, there are further agreements for railway infrastructure maintenance works awarded to Gema, totaling 6.5 million euros. These additional contracts bring the total contracts awarded by Gema under Reway Group's ownership to approximately 84 million euros.
Paolo Luccini, chairman and CEO of Reway Group, commented: "These significant new contracts acquired in the railway sector, just a few months after Reway Group entered this industry, confirm the validity of our strategic choice. This allowed us to grow in a highly dynamic and rapidly expanding market, at the center of significant national investments."
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This press release is available on the Company's website https://www.rewaygroup.com/ under Investor Relations - Press Releases and at . ****
Reway Group — the Parent Company of the Group of the same name — is Italy's largest operator specialised in rehabilitation and maintenance of road and highway infrastructures, as well as the only organisation in Italy capable of handling all the activities related to the chain of restoration of bridges, tunnels and viaducts, and to also have in its core business the maintenance of the railway network.
Reway Group was formed in December 2021 via the assignment of the shares held by M.G.A. S.r.l., Soteco S.r.l. and TLS S.r.l. — companies operating in Italy in the road and highway infrastructure maintenance and rehabilitation sector, which are currently operatio nal and 100% controlled
by Reway Group. The Group was created to provide its subsidiaries with a unified corporate and managerial structure, in order to best address the evolution of a sector that is markedly expanding and growing, both in Italy and abroad. The Group's subsidiaries also include Gema, a leading player in the maintenance of infrastructure and civil works in the railway sector. To this end, the Company provides services to its subsidiaries, including planning and financial strategy, procurement of
Reway Group has a workforce of 500 overall and has a modern fleet with over 300 operating vehicles.
Contacts
Reway Group S.p.A. Company | Federico Della Gatta – Investor Relations Manager| [email protected]
Integrae SIM S.p.A.| T +39 02 96846864 Euronext Growth Advisor & Specialist | [email protected] | Piazza Castello 24 - 20121 Milano