Boston-based private equity firm Advent International has completed the previously announced sale of Aeropuertos Dominicanos Siglo XXI (Aerodom), a concession company that operates six of the Dominican Republic's nine airports, to Vinci Airports for an undisclosed amount.
“With an average annual growth rate of five percent over the past decade, the Dominican Republic has an attractive and dynamic economy,” Vinci said in a statement. “The country notably benefits from North American growth and the local authorities’ ambitious tourism expansion policy.”
According to Vinci’s statement, the six airports combined handled 4.5 million passengers in 2015, with international travelers accounting for 98 percent of the total. Aerodom’s concession expires in 2030.
Advent acquired the Dominican airports in September 2008 from the Hazoury Group, Vancouver Airport Services and other local investors, the private equity firm said at the time. It did not disclose financial details nor did it specify through which of its funds it made the investment.
Under Advent’s ownership, Aerodom formed a new route development group to increase traffic to its airports; repaved and expanded the runway of Las Américas and Gregorio Luperón terminals, the busiest of the six airports; and built 17 new hangars, the firm said in a separate statement, without disclosing the amount of these investments. The other four airports operated by Aerodom are Presidente Juan Bosch and Arooyo Barril in Samaná, La Isabella in Santo Domingo and María Montez in Barahona.
Since its inception in 1984, Advent has invested $30 billion in more than 300 private equity transactions in 40 countries. According to its statement, the firm has been investing in airports and the infrastructure sector for 19 years. In addition to Aerodom, investments in airport and port concessions include Aeroplazas, the commercial developer of the Puerto Vallarta and Guadalajara airports in Mexico; AMAIT, the operator of Toluca International Airport in Mexico; Fumisa, the former operator of certain commercial areas at Mexico City International Airport; and TCP, Brazil’s second-largest container terminal.
When it acquired Aerodom, Advent established Latin American Airport Holdings to hold its interest in the Dominican concession company as well as its other airport businesses.
It is unclear whether the firm has a dedicated infrastructure strategy and whether it invests in infrastructure beyond ports and airports. According to its website, the sectors it invests in are business and financial services, healthcare, industrial, retail, consumer and leisure, and technology, media and telecom. The firm declined to comment on its strategy in more detail.
For Vinci Airports, which develops, finances, builds and operates airports, the Aerodom acquisition adds to its existing portfolio of 32 airports in Europe, Asia and Latin America. Its network handles around 100 million passengers with a recorded revenue of €820 million.