AMP Capital has broken into the North American rail sector with the acquisition of intermodal company ITS ConGlobal.
The Sydney-based fund manager is understood to have paid Carlyle Infrastructure Partners over USD 500m in a transaction that implies it paid around 10.5 times earnings before interest, tax, depreciation and amortisation.
Head of infrastructure equity for North America, Dylan Foo, told Inframation that AMP had used acquisition financing to obtain the asset but declined to provide more detailed information. He added that the deal “followed a traditional infrastructure financing structure where terms are between five and seven years.”
Inframation understands that indicative bids for the asset were due five or six weeks ago.
ITS ConGlobal operates railroad and auto terminals, plus container yard depots in the 90 locations in the US. It also maintains and repairs intermodal equipment and has a presence in Mexico and Costa Rica.
The rail group will join the UK’s Angel Trains in AMP Global Infrastructure Fund I, bringing the total number of assets it has invested in to five. The USD 1.65bn fund held a final close in December 2016.
The fund’s other investments include Millenium Parking Garages in the US, Swedish district heating business Adven, Danish shipping vessel group Esvagt and Spanish TV broadcasting tower operator Axion.
Foo in a 9 October statement said: “We continue to look for great investments in the US and globally on behalf of our investors. Our focus remains on the middle market, which is where we see the greatest value and opportunity. Sectors that we are continuing to focus on in North America include transportation, energy and communications where there is an exciting pipeline of deals.”
He also told Inframation that the fund is in ‘full capital deployment mode’ and should make another investment in the next six to 12 months.
JP Morgan Securities (fiancial), ING Capital (debt), KPMG (tax) and Weil, Gotshal & Manges (legal) all advised AMP Capital.