Headquartered in Berlin, Gegenbauer Group employs 18,000 people and generates average sales of €900 mln annually, split equally between hard and soft services.

Following the merger, Frankfurt-headquartered Apleona will become an integrated real estate services firm with more than 40,000 employees across Europe, generating annual sales of around €3.5 bn.

Dr. Jochen Keysberg, CEO of Apleona, said: 'Large, international customers are increasingly looking to outsource integrated facility management services and to bundle ever-larger service packages, digital solutions and products for energy-saving and decarbonization of building stock.

'Apleona will enter a new phase of growth, continuing the strategy of professionalizing and digitalizing internal structures, processes and how services are delivered. We will manage the investments in personnel and expertise that this requires even more effectively with Gegenbauer’s help as part of a bigger and more capable Apleona.'

The service portfolio will include the full range of technical, commercial and infrastructure services for commercial real estate in all asset classes.

As part of the transaction, the former shareholders of the Gegenbauer Group will become shareholders in Apleona, while European private equity firm PAI Partners will remain Apleona’s majority shareholder.

Werner Gegenbauer, shareholder of Gegenbauer, said: 'This combination is the ideal solution for Gegenbauer’s future, thanks to the complementary business models, markets and customer coverage of the two firms.

'Additionally, the corporate cultures of Gegenbauer and Apleona are a perfect fit. Gegenbauer employees will become part of a success story geared toward the long term and can contribute so much knowledge and expertise from our company history, which has spanned nearly 100 years.'

Ralph Heuwing, partner and head of DACH at PAI Partners, said: 'The merger with Gegenbauer will further strengthen Apleona’s market position and runway for growth. In the future, we anticipate Apleona being one of the strongest and most visible brands in what continues to be a highly fragmented European facility management market. Apleona, with PAI’s support, will continue to play an active role in further consolidating this market.'

The transaction is subject to approval from antitrust authorities and is expected to be completed by the summer of 2023. Once antitrust authorities have approved the merger, all assets will be transferred to the Apleona Group. All business will be continued under the Apleona brand following the merger.