LISBON, Portugal, July 18, 2024 - Investment funds managed, directly and indirectly by Strategic Value Partners, LLC and its affiliates (together, "SVP") and other minority investors, have agreed to sell concessionaire AEDL – Auto-Estradas do Douro Litoral ("AEDL") to funds managed by Igneo Infrastructure Partners ("Igneo").
SVP acquired AEDL in 2021 from the road operator Brisa after the company had been in default on its debt service obligations. Since then, SVP has changed AEDL's management team and successfully renegotiated the operations and maintenance contract of the road operated by Ascendi, delivering significant savings to the shareholders.
AEDL operates the Douro Litoral motorway concession, which includes three toll motorways (A32, A41 and A43) within Porto's metropolitan area that comprise 73 km and are a critical part of Portugal's regional road infrastructure. The concession was awarded to AEDL in 2007 by Portugal for a 27-year period, with operations starting in 2012.
Under SVP's ownership, AEDL's road traffic has increased at a Compound Annual Growth Rate (CAGR) of 16%, exceeding pre-Covid levels by 37% and making it the fastest growing toll road in Portugal.
The transaction is subject to customary Grantor and regulatory approvals and is expected to close later this year. Goldman Sachs International and Natixis Partners Iberia served as financial advisors and CS'Associados and PLMJ served as legal counsels for the sale.
Commenting on the sale, AEDL CEO Tiago Rodrigues said, "We thank SVP for their partnership that has driven significant financial and operational improvement to the concession. We are ready for the next phase of our company's growth as we welcome Igneo as the new shareholder and look forward to working with them over the coming years. AEDL is a strong asset with ambitious future prospects, which will continue to play a crucial role in the region's economic development as a key component of the infrastructure for the Porto area."
Alvaro Fabian, Managing Director at SVP, said, "Douro has been a highly successful investment for us, allowing us to demonstrate all of the key pillars of our investment philosophy. After leading the financial restructuring of the company, we have improved operations and performance. We thank AEDL's management team for their partnership over the years."
Hamish Lea-Wilson, Partner, Head of Europe at Igneo, said, "We are delighted to have agreed the acquisition of AEDL. The motorway portfolio combines a long track record, strong traffic growth and an attractive cash flow profile – we believe it will be a great addition to our portfolio of diverse infrastructure assets across Europe. We look forward to working with the AEDL management team to continue the development of the business."
About AEDL
AEDL, which was awarded the Douro Litoral concession in 2007, operates and maintains the A41, A43 and A32 toll roads (total length of 73km), creating important links to Porto and surrounding areas.
About SVP
SVP is a global alternative investment firm that focuses on special situations, private equity, opportunistic credit and financing opportunities. The firm uses a combination of sourcing, financial and operational expertise to unlock value in its portfolio companies. Today SVP manages over $18 billion in assets under management, and since inception, has invested more than $47 billion of capital, including more than $18 billion in Europe. The firm, established by Victor Khosla in 2001, has over 200 employees, including more than 100 investment professionals, across its main offices in Greenwich (CT) and London, and a presence in Tokyo. Learn more at www.svpglobal.com.
About Igneo Infrastructure Partners
Igneo Infrastructure Partners is an autonomous investment team in the First Sentier Investors Group. It invests in high-quality, mid-market infrastructure companies in the UK, Europe, North America, Australia and New Zealand. Operating since 1994, the team works closely with portfolio companies to create long-term sustainable value through innovation and proactive asset management. Igneo manages approximately $18.8 billion in assets as of March 31, 2024 on behalf of more than 200 institutional investors around the world. For more information, visit igneoip.com
Media enquiries
SVP:
Greenbrook – James Madsen / Ksenia Galouchko
svp@greenbrookadvisory.com
AEDL:
Cunha Vaz & Associados
acv@cunhavaz.com
Igneo:
MHP – Benjamin Carr & Bessie Stevens
igneo@mhpgroup.com
