Emerging Media Holdings today announced it has inked an acquisition agreement with Genesis International SA, one of Romaniaâ€™s most rapidly advancing infrastructure development companies focusing on road construction and rehabilitation.
Per the agreement, Emerging Media will acquire 60 percent of Genesis, giving it an immediate boost in sales, assets and earnings.
The acquisition is a sharp contrast from Emerging Mediaâ€™s current subsidiaries, Media Alianta and Analiticmedia-Grup, one of Eastern Europeâ€™s leading TV advertising and production companies, but is expected to widen the companyâ€™s expansion efforts.
“Acquiring Genesis is the beginning of our growth strategy to have two solid business foundations to build on. Our media business is growing steadily and now, with the addition of Genesis, we will be able to become a major participant in Romania’s rapidly developing economy,â€ Iurie Bordian, CEO of Emerging Media stated in the press release.
According to the press release, Genesisâ€™ current pipeline of contracts is valued at 35 million Euros. According to the press release, Romaniaâ€™s non-residential construction work increased 34 percent in 2008*, fueling Genesisâ€™ confidence that its prospective public tenders for the upcoming year will reach an aggregate 100 million Euros.
“With just their existing contracts for major road construction projects through 2012, EMDH and shareholder value should grow quickly and substantially. As we expand our two core business strategy, we will be building multiple acquisition and transaction opportunities for our shareholders and investment funds we have been in contact with,” Bordian stated.
Emerging Media said it will provide more details of the acquisition and financials for both companies at the closure of the transaction.
*According to the recent report, “Construction Sector in Romania 2009 Development Forecast for 2009-2011â€