Intermoney | Ferrovial (Hold, Target Price 24 euros) would be finalising the sale of Amey, its services division based in the UK, for close to 234 million euros. This is according to information on Tuesday from daily Cinco Días, citing Sky News.
The buyer would be a consortium of funds and venture capital firms, specifically One Equity Partners and Buckthorn Partners. It is expected that the process will be closed in the coming weeks. Over the last few months, Ferrovial has been offloading its services businesses in the Iberian Peninsula, and before that in Australia and New Zealand (Broadspectrum), after it announced it was getting out of this activity in 2018. As well as in the UK, the Group currently still has operations in Chile.
Valuation: This would be one step further in the convoluted process of the divestment of Ferrovial’s services business. It was initially designed as a sale of all the activity for some 3 billion euros. Amey has been affected by a lot of polemic, particularly that related to the contract in Birmingham, which resulted in a cost of 250 million euros for the company, apart from the crisis which the whole facility management sector in the UK suffered. Before its deconsolidation, and prior to most of the aforementioned problems, Amey generated EBITDA of 86 million euros in 2017. Currently Ferrovial is focused on strengthening its airports business. Yesterday, before the market opened, it announced it will join the consortium which will build the new Terminal 1 at JFK airport, for something over 1 billion euros.