EQT Infrastructure Limited and Mutua Madrileña have agreed to merge their car park operators Parkia and MutuaPark.
The merger creates the largest pure off-street car park operator in Spain and one of the leading private off-street car park operators. The combined entity will have 54 car parks, an average remaining concession life of 32 years and almost €30 million of revenues. The portfolio of car parks is well diversified by sector and geographically spread throughout Spain with several regional clusters, for example in or around Madrid, Barcelona, Galicia, Andalusia and the Canary Islands.
In addition to realizing synergies of best practices and operational excellence across the car park portfolio, the shareholders plan to further participate in the consolidation of the highly fragmented Spanish car park sector.
Mutua Madrileña will transfer its car parks to Parkia, with EQT Infrastructure retaining 66.8% and Mutua Madrileña receiving 33.2% of the combined entity. EQT Infrastructure acquired Parkia in 2011, which was EQT's first investment in Spain, through a carve-out from Acciona S.A. and has developed the business into an efficient and well regarded car park operator with 31 car parks and around €20 million in revenues. Mutua Madrileña is one of the leading insurance companies in Spain and acquired MutuaPark in 2010. MutuaPark operates 23 car parks with around €9 million in revenues.
Parkia's Chairman Fernando Conte and CEO Jesús Lopez Hidalgo will continue in their current roles in the combined entity.
Fernando Conte, Chairman of Parkia and designated Chairman of the combined entity, said:
"We see strong industrial logic in this merger and the combined entity will have a leading position in the Spanish car park sector. I am looking forward to develop this platform and further grow the business together with management and our industrial board. Our two shareholders are committed to support the efforts."
Javier Mira, General Manager of Mutua Madrileña, says:
"This merger underscores Mutua Madrileña's strategy of diversification in property and financial investments. We believe the partnership with EQT Infrastructure creates a strong car park platform, meeting Mutua Madrileña's investment criteria of long term, attractive yields and moderate risk."
The transaction is subject to anti-trust approval and expected to close in the fourth quarter of 2014.