Stockholm-based EQT Partners and Spanish insurer Mutua Madrileña have merged their car park operators Parkia and MutuaPark.
Under the agreement, Mutua Madrileña will transfer its car parks to Parkia, with EQT retaining 66.8 percent and Mutua Madrileña receiving 33.2 percent of the combined equity. The Nordic firm bills the new company, which will have €30 million of revenues, as the “largest pure off-street car park operator in Spain.”
The enlarged Parkia will manage a total of 54 car parks with an average remaining concession life of 32 years, spread throughout Spain including in and around Madrid, Barcelona, Galicia, Andalusia and the Canary Islands. MutuaPark presently operates 23 car parks with around €9 million in revenues while Parkia, which has 31 car parks, generates sales of about €20 million.
In addition to seeking best practice and operational synergies across the group, the company’s owners said they plan to participate in the consolidation of the “highly fragmented” Spanish car park sector, suggesting they may use Parkia as a platform for future acquisitions.
Parkia’s chairman Fernando Conte and chief executive Jesús Lopez Hidalgo will retain their respective roles upon completion of the merger, which is expected to close in the fourth quarter of the year. The deal remains subject to anti-trust approval.
EQT originally invested in Parkia in 2011 through its €1.17 billion EQT Infrastructure fund, a 2008-vintage fund now fully invested. At the time of the acquisition, Parkia had 29 car parks and expected full-year revenues of €22 million.
EQT is currently investing EQT Infrastructure II, which it closed in January 2013 on €1.925 billion. Companies backed by the vehicle include US bulk liquid storage business Westway Group, German renewables producer EEW Energy from Waste and Norwegian offshore communication operator Tampnet.