TERRAS CIVIL ENGINEERING GROUP – CREATING THE FOUNDATION FOR TOMORROW’S INFRASTRUCTURE

TERRAS – BUILDING CONNECTIONS – with further acquisitions the company follows a distinct growth path towards becoming a national infrastructure provider.

 

In the upcoming years, Germany’s infrastructure will undergo a far-reaching renewal and conversion to allow the country to continue to provide attractive jobs, continue to produce “made-in-Germany” products and offer an environment worth living in – based on a sustainable and CO2-reducing foundation. These objectives require extensive investments in the German infrastructure:

(1) The Federal Transport Infrastructure Plan (“Bundesverkehrswegeplan” (BVWP)) is a central instrument of German transport policy and allocates funds for investments in roads, raiways, waterways and combined transport.

(2) Expansion of renewable energies: the Electricity Network Development Plan (“Netzentwicklungsplan Strom” (NEP)) pools long-term funds for network expansion and reinforcement measures to ensure a reliable supply of electricity and support the expansion of renewable energies.

(3) The Heat Planning Act (“Wärmeplanungsgesetz”): aims to achieve climate-neutral district heating by 2045. Currently, only around 14% of households nationwide are supplied with district heating, meaning that a large gap in demand will have to be closed in the coming years through further investments.

(4) Deutsche Bahn investments: the performance and financing agreement (“Leistungs- und Finanzierungsvereinbarung” (LuF)) and Deutsche Bahn’s high-speed investment plan define the framework conditions for future investments in the expansion and maintenance of the German railway network.

TERRAS positions itself as a nationally active infrastructure provider with its own value creation from engineering (soil investigation, surveying) to classic civil engineering (earthworks, road construction, canal and pipeline construction), special civil engineering and railway construction as well as resources (gravel pits, quarries, recycling, landfills). The continuous expansion of the group creates capacities for the expansion of Germany’s infrastructure.

 

Development of the group

The TERRAS group (headquartered in Westerwald) has grown to a total output of > EUR 150 million since 2021 through organic growth and targeted company acquisitions and generates margins well above the industry average.

With further acquisitions in 2024, TERRAS was able to further strengthen its market position:

Grothe Bau:
With a turnover of EUR 30 million and around 150 employees at its Lübeck location, Grothe is a full-service provider in the field of classic civil engineering. The size of the company (and the resulting regional coverage up to the Hamburg area), its market reputation built up over 60 years and its wide range of services positions Grothe as the number one contact for public sector investments (partly through long-term framework agreements with local authorities for the maintenance and expansion of electricity networks) and also allows Grothe to participate in major infrastructure projects, such as the construction of the Fehmarnbelt tunnel.
Grothe strengthens the TERRAS Nord division (classic civil engineering).

Brauckmann & Damm:
With a turnover of EUR 15 million and around 50 employees, Brauckmann & Damm is one of the best-known and most efficient earthworks and sports ground construction companies in Hamburg. With its advanced machinery (e.g. telescopic excavators with 3D control) and a specialization in large earthworks, Brauckmann & Damm is ideally positioned to participate in complex infrastructure projects (e.g. U4 extension) in the Hamburg metropolitan region.
Brauckmann & Damm also strengthens the TERRAS Nord division (classic civil engineering).

Vermessungsbüro Wolfert:
With a turnover of EUR 4 million and around 50 employees, the Wolfert group strengthens the TERRAS Services division with its expertise in surveying and geoinformation services. Wolfert’s participation in major infrastructure-related projects (e.g. with the clients EnBW and TenneT in the field of line surveying for supra-regional electricity lines (e.g. SuedLink) and wind power plants) enables TERRAS to consolidate its position as an infrastructure provider in Germany and to increasingly position itself in major projects with cross-disciplines in the future.

Buy-and-Build – criteria for add-on acqusisitions

TERRAS is continuously striving to expand the group in the targeted areas (surveying, soil investigation, classic civil engineering, special civil engineering, railway construction and resources) in order to achieve further growth. Relevant target companies can be assigned on the basis of the following criteria:

With the further development of the existing group companies and further inorganic growth, TERRAS is aiming for a sales volume of > EUR 500 million by 2028, covering the core sectors of classic civil engineering, railway construction and special civil engineering in Germany’s metropolitan regions. Therefore, the entrepreneurial vision of the Sojka brothers and their holding team is far from being fully realized today and the dynamic SME concept TERRAS still offers enormous growth potential.

On the part of AUCTUS, the TERRAS group is managed by Dr. Daniel Meuthen and Marvin Aurnhammer.

More information about the group can be found at: www.terras-tiefbau.group

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About AUCTUS
AUCTUS is the most active investment company for small- and medium-sized companies in Europe with more than 415 investments in the past 23 years. The focus of our investments is on majority holdings in companies with annual sales of between EUR 10 million and EUR 150 million. AUCTUS stands for sustainable organic and also inorganic growth by acquisitions. We achieve this in a trustful partnership together with the management of our companies. We are specialized in building successful medium-sized company groups – We create market leaders. The more than 35 experienced AUCTUS investment experts currently manage around 50 platform investments from various sectors of the economy. The sum of the platform investments with a total of more than 200 individual companies achieves annual sales of € 3 billion. Sales and results have been growing at >10% per year for years. Our successful work is regularly rewarded with prestigious awards and top international rankings.