Allianz Capital Partners, Borealis Infrastructure Management, an affiliate of Abu Dhabi Investment Authority and MEAG, Munich Re (Group)’s asset manager, have teamed up to acquire Autobahn Tank & Rast Holding GmbH, a provider of food service, retail goods, hotel accommodation and fuel on German motorways. The financial terms of the deal were not disclosed. Tank & Rast is being sold by British private equity firm Terra Firma Capital Partners and Deutsche Asset and Wealth Management. The acquisition is expected to close later this year. Borealis is the infrastructure investment arm of the Ontario Municipal Employee Retirement System (OMERS).
Allianz, Borealis, Infinity and MEAG Agree to Acquire Tank & Rast
TORONTO, ONTARIO and MUNICH, GERMANY–(Marketwired – Aug. 3, 2015) – Allianz Capital Partners GmbH (ACP), Borealis Infrastructure Management Inc. (Borealis), Infinity Investments SA, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and MEAG, Munich Re (Group)’s asset manager, (Consortium), signed an agreement to acquire 100% of Autobahn Tank & Rast Holding GmbH from Terra Firma Capital Partners and a fund managed by Deutsche Asset and Wealth Management for an undisclosed sum.
Tank & Rast is Germany’s largest and leading owner and concessionaire of a network of motorway service areas providing essential services to 500 million visitors each year. The Tank & Rast network comprises around 390 service areas, approximately 350 petrol stations and some 50 hotels on Germany’s highway network.
The Consortium is a group of like-minded investors with long-term investment horizon and significant investment experience across various sectors and in Germany, Europe and globally. All Consortium members pursue a strategy of generating stable and predictable returns over the long term.
“As market leader in Germany, Tank & Rast is an attractive investment for all of us due to its long-term and stable investment characteristics and its stable regulatory and contractual environment,” said a representative of the Consortium. “Tank & Rast has a proven strategy and track record of steady operational performance. We look forward to working with its management to continue Tank & Rast’s exceptional long-term success story.”
“The acquisition is an important step in our ambition to substantially grow our portfolio of high-quality infrastructure companies and to diversify across sectors and countries. We are committed to support management in sustainably growing Tank & Rast in close co-operation with all stakeholders and to further improve its essential services for all customers,” said Christian Fingerle, Chief Investment Officer responsible for infrastructure investments at Allianz Capital Partners.
“By investing in this German core infrastructure asset, we are further diversifying our portfolio with manageable risks and attractive returns,” says MEAG Managing Director Holger Kerzel. “With their calculable income, infrastructure investments are ideal for covering long-term payment obligations in Munich Re (Group)’s core business of insurance.”
“On behalf of Borealis Infrastructure, we are very pleased to announce our first investment in Germany alongside like-minded, long-term German and international investors. Germany’s stable concession framework and strong economy make it an ideal destination to invest. Tank & Rast provides a strong match for OMERS long-term obligations to its plan members, and represents the kind of rare, high-quality business that fits with OMERS strategy to increase its exposure to infrastructure,” said Michael Rolland, Chief Investment Officer, OMERS Private Markets.
“Tank & Rast has made great progress under the ownership of Terra Firma and Deutsche Asset & Wealth Management,” said Dr Karl-H. Rolfes, CEO of Tank & Rast. “We are now looking forward to working with our new owners on further expansion and innovation across the network. We will continue investing in new and existing sites as well as launch new product initiatives and partnerships to the benefit of our customers. With their long-term commitment, their strong financial position and an outstanding reputation our new shareholders will be excellent new owners who are well aware of the specific public service mandate of Tank & Rast and who will support the continuation of our modernisation strategy.”
The transaction is conditional on customary regulatory clearances from the competent authorities in Germany and is expected to close during the second half of 2015.
Notes to editors:
Allianz Capital Partners
Allianz Capital Partners is the Allianz Group’s in-house investment manager for alternative investments. With offices in Munich, London, New York and Singapore Allianz Capital Partners manages around EUR 12 billion of alternative assets. The investment focus is on direct investments in infrastructure and renewable energy as well as private equity fund investments. ACP’s investment strategy is targeted to generate attractive, long-term and stable returns while diversifying the overall investment portfolio for the Allianz Group insurance companies.
Borealis Infrastructure is the international infrastructure investment platform backed by Ontario Municipal Employee Retirement System (“OMERS”), one of the largest pension funds in Canada. OMERS is one of Canada’s largest pension funds, with $72.0 billion in net assets. OMERS is focused on providing secure and sustainable pensions to more than 450,000 members.
Borealis’s investment team targets large-scale, world-class infrastructure opportunities and actively manages all of its investments. Sponsorship by OMERS enables Borealis to be a long-term buy-and-hold investor. Borealis investments include Scotia Gas Networks, the second largest gas distribution group in the UK; Associated British Ports, the largest port operator in the UK; High Speed 1, a 30-year rail concession in the UK; NET4GAS, the gas transmission system operator in the Czech Republic (together with ACP); Caruna, the former Fortum electricity distribution business in Finland; and Ellevio, the former Fortum’s electricity distribution business in Sweden.
Infinity Investments SA / Abu Dhabi Investment Authority
Infinity Investments SA, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), is a European-based investor in infrastructure assets.
The ADIA Group manages a global investment portfolio that is diversified across more than two dozen asset classes and sub-categories. With a long tradition of prudent investing, the ADIA Group’s investment decisions are based solely on its economic objectives of delivering sustained long-term financial returns. The ADIA Group’s Infrastructure Division was created in 2007 to build and manage a global portfolio of infrastructure investments with a core focus on assets with strong market-leading positions and relatively stable cash flows, including utilities such as water, gas and electricity distribution and transmission companies, as well as transport infrastructure, such as toll roads, ports, airports and freight railroads.
MEAG stands for best practice asset management for Munich Re and ERGO. MEAG has representations in Europe, Asia and North America and also offers its extensive know-how to institutional investors and private clients from outside the Group. MEAG currently manages assets to the value of around EUR 270 billion.
Autobahn Tank & Rast
Autobahn Tank & Rast is the leading provider of food service, retail goods, hotel accommodation and fuel on German motorways. The company and its tenants operate approximately 350 filling stations and around 390 restaurants (including approximately 50 hotels). Approximately 500 million travelers visit Tank & Rast service areas every year. Serways is the service brand of Tank & Rast, which stands for improved customer focus and increased service quality. Around 200 service areas operate under the Serways brand, as well as four hotels.
Allianz Capital Partners
OMERS – Borealis Infrastructure
+1 (416) 369.2399
Dr. Josef Wild
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