HIG Capital to buy majority stake in Germany’s Terras Group

HIG Capital has agreed to acquire a majority stake in Terras Group, an infrastructure engineering and construction services provider active in the DACH region, PE Hub reported. The transaction gives HIG control of a German platform whose work includes civil engineering, specialty foundation engineering, rail construction and related engineering services.

Financial terms were not disclosed by PE Hub. The report also did not specify the expected closing date, the seller or the size of the stake beyond describing it as a majority interest.

Terras’ co-founders, Dr Dirk Sojka and Ralf Sojka, will reinvest in the business and remain involved as the company pursues further growth, according to PE Hub. Founder reinvestment is commonly used in private equity transactions to keep management economically aligned with the new majority owner, while allowing the sponsor to set capital allocation and acquisition priorities through its controlling position.

Expansion plan

HIG intends to increase cluster density in Terras’ existing German markets and to enter new geographies selectively, PE Hub reported. In infrastructure services, cluster density typically refers to building a stronger local or regional presence around existing operating bases, which can improve deployment of crews, equipment and technical expertise across nearby projects.

The reported strategy points to a buy-and-build or regional consolidation approach, although PE Hub did not identify any acquisition targets. Under such a model, a private equity owner can use a platform company to add complementary services, expand into adjacent markets or increase coverage in areas where customer demand is already established.

Terras operates in parts of the infrastructure services market that are tied to construction, transport networks and technically specialized ground works. Its activities span regional civil engineering, specialty foundation engineering, rail construction and engineering work connected to those services, according to PE Hub.

Private equity context

The deal adds to HIG Capital’s activity in business services and infrastructure-linked assets. PE Hub identified HIG as the buyer and Terras as a provider serving the DACH region, but did not provide further details on the investment vehicle or advisers.

For investors and operators, the transaction highlights continued private capital interest in fragmented specialist services businesses that support infrastructure maintenance and development. The market impact will depend on how HIG funds expansion, whether Terras pursues acquisitions and how quickly the company can extend its service footprint beyond its current German markets.

This story draws on original reporting from PE Hub.