Agreement reached on the €455m sale of UK-based services division as Ferrovial continues its Horizon 24 strategy.
Ferrovial has reached an agreement for the sale of 100% of the Amey group, almost completing the divestment of its former services division. The acquiring vehicle is a UK company controlled by funds managed by One Equity Partners, who are entering into the transaction alongside their acquisition partner, Buckthorn Partners.
The transaction is estimated to be worth €455m, while the net consideration will be in the form of cash (€124 million) and a vendor loan note (€154 million) repayable over the next five years with an interest of 6% per annum, increasing to 8% after third year.
Amey provides a range of critical services in the UK, including infrastructure maintenance and upkeep, consulting and facility management. It also provides waste treatment business, though that is not part of this transaction and Ferrovial will retain the UK waste treatment business within its Energy Infrastructure and Mobility division.
Amey, excluding the waste treatment business,has a workforce of around 11,000 employees, a reported €1,647m in annual revenues (2021) and its EBITDA was €51.5m. It’s work backlog totals €7,290m.
Ignacio Madridejos, CEO of Ferrovial, commented: “This transaction represents a step forward in our Horizon 24 business plan, focused on developing sustainable infrastructure to continue creating value for our shareholders, and the communities in which we operate. The deal practically concludes the divestment of the Services business.”
Ante Kusurin, principal at One Equity Partners, added.“Amey is a well-regarded, long-standing player in the critical infrastructure design and management space in the UK, and we are very excited about the enhanced opportunities for growth Amey will have as an independent company.”
Nicholas Gee, Founding Partner at Buckthorn Partners said “Amey is at the heart of developing innovative routes to delivering the UK’s infrastructure needs. Amey’s consulting and engineering services are essential to expedite the energy transition by improving the performance of transport and building infrastructure.”
Ferrovial conducted a strategic review of all its businesses aimed at focusing the company’s future on infrastructure, the prime source of value and returns for its shareholders. As a result, it classified all its Services operations as ‘available for sale’.
To that same end, the company adopted Horizon 24, a strategy for the period 2020-2024 that prioritizes infrastructure development, construction and management in parallel with businesses in the areas of mobility, water and the energy transition. The plan targets 11% annual EBITDA growth based on the pursuit of excellence, sustainability, innovation, efficiency, and the selection of businesses and markets.