Kohlberg Kravis Roberts & Co. is buying a 12.5% equity stake in Saba Infraestructuras, a Spanish operator of car parks and logistics parks. KKR joins a consortium of shareholders including Spanish savings bank Criteria CaixaHolding, investment firm Torreal and mid-market buyout shop ProA Capital.
Criteria CaixaHolding, the leading savings bank in Spain, Torreal, one of the largest private investment firms in Spain, ProA Capital, the Spanish mid-market private equity firm, and global investment firm Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”) today announced that they have entered into a partnership agreement whereby KKR will acquire a 12.5% equity stake in Saba Infraestructuras, a leading operator of car parks and logistics parks. KKR will join the shareholder consortium comprised of Criteria CaixaHolding (55.7% equity stake post KKR entry), Torreal (20%) and ProA Capital (10.5%).
Saba Infraestructuras is the result of a spin-off from Abertis, the leading publicly listed European infrastructure conglomerate, and its international footprint spans Spain, Italy, Chile, Portugal, France and Andorra. It operates two businesses: Saba Aparcamientos — a leading European car park operator; and Saba Parques Logisticos — the market leader in logistics parks in Spain.
Saba Aparcamientos manages 195 car parks in a portfolio across 80 cities and towns in Spain, Italy, Chile, Portugal, France and Andorra. Saba Parques Logisticos operates a network of 10 logistic parks across Spain, in both core metropolitan areas and outer circles. Its two largest assets, CILSA and Parc Logistic de la Zona Franca, were developed in prime locations in the Barcelona port area. Its main clients are logistics operators and large multinationals from the distribution and manufacturing sectors.
The partnership represents KKR’s third significant European infrastructure investment, following its deal in June with Sorgenia to invest in operating wind assets in France, and July’s partnership with Munich Re to acquire a 49% equity stake in Grupo T-Solar, the largest European solar photovoltaic (PV) power generator.
Commenting on the announcement, Jesus Olmos, European Head of KKR’s infrastructure business, said: “Today’s announcement represents a further and exciting development in KKR’s infrastructure platform and we are pleased to be partnering with highly trustworthy and established local players such as Criteria CaixaHolding, Torreal, and ProA Capital. The stable nature of Saba Infraestructuras fits our investment criteria and its parking business has shown superior resilience during the economic downturn. The group offers a long term and predictable cash flow profile in addition to growth potential. We continue to be excited about the opportunities which lie ahead for us in the infrastructure space.”
Salvador Alemany, President of Saba Infraestructuras, added: “We welcome the partnership with a group of such size and global presence as KKR, and the investment is a sign of KKR’s confidence in our business. KKR not only has extensive experience and expertise in the investment sector, but it also has a strong vision, culture and knowledge of the sectors in which it operates. Its long-term approach matches that of Saba Infraestructuras and we look forward to working in partnership with KKR as we further expand the business.”
Saba Infraestructuras is a leading operator of car parks and logistics parks. It has a presence in 6 countries, Spain, Italy, Chile, Portugal, France and Andorra, and employs an average of nearly 1,400 people. Its experience with car park management goes back to 1966 with Saba Parkings and in the case of logistics parks to 1999 with Saba Parques Logisticos (previously Abertis Logistica). In 2010 Saba’s operating income reached 193 million Euros and its EBITDA was 80 million Euros (pro-forma). Saba Aparcamientos is the leading car parks operator in Spain and one of the biggest in Europe. It currently has a presence in over 80 municipalities in Spain, Italy, Chile, Portugal, France and Andorra. The company has in the region of 130,000 spaces distributed throughout almost 200 car parks. In addition, it has new projects in progress that will bring an additional 214 car parks and over 140,000 managed spaces to the network. The gross surface area of the logistics parks owned by Saba Parques Logisticos exceeds 715 hectares, with a buildable area of almost 3 million square meters. Saba Parques Logisticos has around 933,000 built square meters, with an average occupation rate of 75%, and 128,000m(2) devoted to logistics-related services. For additional information, please visit Saba’s website at www.saba.eu .
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $58.7 billion in assets under management as of September 30, 2011. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platform. KKR is publicly traded on the New York Stock Exchange KKR +0.33% . For additional information, please visit KKR’s website at www.kkr.com .
About Criteria CaixaHolding
A 100% owned subsidiary of “la Caixa” group, CaixaHolding is a consolidated business venture: it combines investments in sector leaders listed on the stock exchange with investments in non-listed companies with consistent profitability and controlled risk levels. It drives growth, development, and profitability of its portfolio companies through active management. It has significant knowledge of the sectors where it invests and an ample track record positioning it as an important investment company. Its investment philosophy includes a medium and long term focus.
Torreal is one of the largest private investment firms in Spain. Since its creation in 1990, it has been managing the assets of the Abello family. Torreal is a general investor with a portfolio of more than 15 companies and assets under management above EUR1,500 million. Traditionally a benchmark investor in Spain, it is now also starting to play an increasingly active role abroad. Torreal typically makes investments of between 30 and 200 million euro per operation (equity ticket). Torreal is noteworthy for its participative style, local presence and prestige, strategic vision, financial support, professionalism and personal contact with the main market players. However, Torreal’s chief distinguishing characteristic is its enormous flexibility when undertaking any investment, thanks to the fact that it has one sole shareholder. For additional information, please visit Torreal’s website at http://www.torreal.com/ .
About ProA Capital
Founded in 2007, ProA Capital is one of the main Spanish Private Equity entities with more than EUR250 million in assets under management from prestigious international institutional investors. ProA Capital’s investment philosophy is based on the capacity to generate direct investment operations and on the proactive attitude of the professionals who make up its human team. Aside from Saba Infraestructuras, ProA Capital has investments in companies with leading positions in markets as diverse as Food and Beverage (Grupo Palacios), Assisted Reproduction Technologies (Clinic Eugin) and Sanitary Transport Services (Ambuiberica).