Royal BAM Group has agreed to acquire A.Hak, a Dutch specialist in underground energy and water infrastructure, for an enterprise value of €504m, a deal that gives BAM a pipeline and cable platform to scale in the UK, where energy network and water investment is rising.

Royal BAM Group, the Netherlands-listed construction and infrastructure group, operates across Europe including the UK and Ireland.

A.Hak, founded in 1963 and headquartered in Tricht, Gelderland, builds transport pipelines, transmission cables and distribution networks for electricity, heat, gas and water, generates about 85% of revenue in the Netherlands and also operates in the UK and Belgium.

More than half of A.Hak’s revenue comes from framework agreements and its four-year order backlog is worth €1bn; it will keep its name and management, with completion expected in the first quarter of 2027 subject to regulatory approvals.

Royal BAM Group CEO Ruud Joosten said A.Hak adds specialist transport pipeline and trenchless expertise to BAM’s energy and civil engineering capabilities, and that BAM’s UK position offers opportunities to scale A.Hak’s activities.

The enterprise value is €504m, with A.Hak’s adjusted EBITDA expected to rise to €65m to €75m in the medium term and the deal immediately accretive to free cash flow.

BAM says the energy transition and essential water investment are taking place on an even larger scale in the UK than in the Netherlands, which is the stated logic for scaling A.Hak’s British activities.

The regulatory pipeline supports it: Ofgem’s RIIO-3 settlement approves an initial £28bn (€32.8bn) for gas and electricity networks to 2031, expected to rise to about £90bn (€105.3bn), while AMP8 water investment is around £104bn (€121.7bn) to 2030.

BAM’s UK construction arm returned to profit in 2025 after two years of losses, with a pre-tax profit of £18.4m (€21.5m), giving the UK expansion a recovering base.

The deal combines BAM’s existing energy transmission and distribution operations with A.Hak’s pipeline and trenchless capability, adding specialist depth rather than opening a new market.

For the sector, framework-heavy specialists with multi-year backlogs are becoming core acquisition targets for contractors seeking exposure to regulated energy and water spending, because that spend is committed through price controls rather than dependent on project-by-project tendering.

Source: Construction News / Construction Wave / New Civil Engineer