Ferrovial sells Spanish Infrastructure Services business for €186m

Image courtesy of Ferrovial
Ferrovial has reached an agreement to sell its Infrastructure Services business in Spain to Portobello Capital as part of the ongoing divestment of its services units.

The deal, which covers the infrastructure maintenance and upkeep and the facility management businesses, represents an enterprise value of approximately €186m, and the implied equity value at December 2021 is estimated to be around €171m.

Ferrovial said the price will be supplemented by earn-outs of around €50m based on compliance with certain requirements following completion of the transaction.

When the sale happens, Ferrovial will acquire a 24.99% stake in Portobello Capital for an estimated €20m. Completion of the deal is expected to take place in the first quarter of 2022.

Ferrovial Services’ Infrastructure Services business reported €822m in revenue in 2020 and €29m in EBITDA, and it had a backlog of around €1.56bn in September 2021. It delivers transport infrastructure maintenance and upkeep services, healthcare and social welfare support services, facility management and industrial services.

Following a strategic review, Ferrovial put all its services operations up for sale to prioritise infrastructure development, construction and management. The plan pursues 11% annual EBITDA growth.

So far it has sold its Environmental Services business in Spain, Broadspectrum’s operations in Australia and New Zealand, and municipal cleaning contracts in the UK. Divestment of other services businesses in the UK, Chile and the US is ongoing, the company said.

Story for GCR? Get in touch via email: [email protected]

Latest articles in News