GS Construction Subsidiary Acquires Polish Housing Business Company

[Asia Economy Reporter Oh Ju-yeon] GS Engineering & Construction announced on the 21st that its subsidiary, GS E&C Poland SP.ZO.O, will acquire the entire business of Danwood Holding S.A, a housing business company in Poland. The company explained, "The goal is to enter the global prefab business, secure a position in the European market, and expand the business area based on synergy with existing businesses." The acquisition price is 179.97 billion KRW.

The company stated, "Danwood Holding S.A is a company that, based on cost competitiveness of Polish production, supplies detached houses not only in its home country but also exports to markets in Germany, the United Kingdom, Switzerland, and Austria. As of 2018, it holds the number one market share in Germany's turnkey prefabrication housing market." They added, "Through this acquisition, stable market entry into global prefabrication construction is possible, and we will establish a foundation for global expansion based on the company's sales, production, and technology."

Additionally, GS Engineering & Construction separately announced that GS E&C Poland SP.ZO.O will provide guarantees for all obligations under the sales contract related to the acquisition of Danwood Holding S.A's business and the acquisition amount. The debt guarantee amount is 179.97 billion KRW, which corresponds to 4.96% of the company's equity capital.