Spanish construction group Ferrovial has agreed the sale of its UK subsidiary Amey to buyout funds One Equity Partners and Buckthorn.
The company said the deal advanced its strategy of focusing on the development, construction and management of sustainable infrastructure, and the sale all but concludes its long-standing goal of divesting its services division.
In February, Ferrovial sold its infrastructure operation and maintenance business in Spain for $104m.
The deal has an enterprise value of $450m, and the estimated equity value of the deal will be about $270m. The precise figure will depend on Amey’s debt and working capital on the completion of the transaction later this year.
Amey provides a range of services in the UK, including infrastructure maintenance, consulting and facility management. It also has a waste treatment arm, which Ferrovial will retain and fold into its energy, infrastructure and mobility business unit.
Ignacio Madridejos, Ferrovial’s chief executive, 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, the principal of 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.”
In 2019, Ferrovial yesterday cut the value of Amey from €877m to €103m, and reiterated that its entire services division is on sale. The write-down followed the subsidiary’s defeat in a long and acrimonious legal dispute with Birmingham council over the interpretation of a £2.7bn, 25-year road maintenance contract (see further reading).