#Germany #H.I.G. Capital #Infrastructure #TERRAS Group #Montabaur

H.I.G. Capital's Strategic Acquisition of TERRAS Group

In a significant move for the infrastructure industry, H.I.G. Capital, a prominent global alternative investment firm managing $75 billion in assets, has officially signed an agreement to acquire a majority stake in TERRAS Group. This strategic partnership not only highlights H.I.G.'s commitment to enhancing infrastructure capabilities but also affirms the Sojka brothers' dedication to continuing the momentum of TERRAS in the rapidly evolving market.

Overview of TERRAS Group

Founded in 2014 and based in Montabaur, Germany, TERRAS Group has quickly established itself as a leader in providing diverse infrastructure engineering and construction services across mobility, energy, digital, water, and urban development sectors in the DACH region. The company is renowned for its comprehensive solutions in civil infrastructure, which encompass regional infrastructure, foundation engineering, railway construction, and much more. With Germany poised for considerable infrastructure investments alongside an urgent energy transition, as well as surging demand for digital infrastructure, TERRAS is set for a promising growth trajectory.

H.I.G.'s managing director for Middle Market Europe, Rohin Jain, expressed enthusiasm about this acquisition, stating, "TERRAS embodies the type of business we aim to align with—a founder-led platform demonstrating a proven success model in a vast, attractive market. The long-standing infrastructure investment backlog in Germany combined with the acceleration of energy transitions presents an exceptional long-term growth opportunity for TERRAS. We are eager to support the team in scaling this business into one of national and European significance."

Vision for Expansion

As part of this strategic acquisition, H.I.G. Capital plans to bolster the company's expansion efforts through increased cluster density in existing German markets while exploring opportunities for selective geographical growth. The Sojka brothers will not only retain significant ownership but also continue to lead the company, ensuring that the vision established at its inception remains front and center.

Ralf Sojka and Dr. Dirk Sojka, co-founders of TERRAS, reflected on the foundation of their company, noting, "When we started TERRAS, we envisioned a platform that would deliver the entire civil infrastructure value chain while maintaining the entrepreneurial culture necessary for regional specialists to thrive. Today's agreement is a testament to that vision, and with H.I.G. as our partner, we believe we have only begun our journey." This synergy between H.I.G. Capital and TERRAS is anticipated to spark innovation and drive sustainable growth in both existing and new markets.

About H.I.G. Capital

H.I.G. Capital is known for its flexible, operationally focused approach towards both debt and equity investments in middle-market companies. Established in 1993, it has since managed more than 400 companies globally, with a current portfolio encompassing over 100 businesses generating combined revenues exceeding $53 billion. Besides infrastructure investments, H.I.G. Capital's diverse areas of focus include buyouts, recapitalizations, and investments in both profitable and underperforming entities. This strategic acquisition of TERRAS represents yet another step in H.I.G. Capital’s robust investment strategy and commitment to growth in high-demand markets.

TERRAS Group's expertise in infrastructure aligns seamlessly with H.I.G.'s strategic vision, setting the scene for a potentially transformative partnership in the coming years. As the market evolves, both entities are poised to lead with groundbreaking infrastructure solutions and innovative growth strategies, ensuring their legacy in the infrastructure domain continues to flourish.

For more information about H.I.G. Capital and its investment strategies, please visit hig.com.