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FCC Sells its logistics division to Corpfin Capital for 32 million euro


FCC Sells its logistics division to Corpfin Capital for 32 million euro

• The transaction will reduce FCC's debt by 27 million euro

FCC Sells its logistics division to Corpfin Capital for 32 million euro

FCC, the Citizen Services Group, has reached an agreement to sell its logistics division to Corpfin Capital for 32 million euro. This transaction will enable FCC to reduce debt by 27 million euro. FCC Logística will form part of the portfolio of funds managed by venture capital firm Corpfin Capital, and is expected to be the first addition to its new fund, Corpfin Capital Fund IV.

FCC Logística is among the top three companies in the sector in Spain with more than 30 years of experience and a high degree of specialisation in the automotive, retail, pharmaceutical and technology industries, among others. The company also operates in Portugal, which accounts for 10% of revenues. FCC Logística has 3,300 workers, manages a storage network spanning over 800,000 square metres and has more than 500 vehicles. It obtained over 250 million euro in revenues last year.

FCC Logística (to be renamed Logisters), will have the full financial support of Corpfin Capital, a leading Spanish private equity firm. According to Alvaro Olivares, the partner at Corpfin Capital in charge of the deal, "FCC Logística's outstanding executive team and staff, its sound client portfolio, its agility, and its specialisation in value-added logistics services represents a unique platform from which to expand and strengthen its leading position." This operation is subject to approval by Spain's National Competition Commission (CNMC).

For FCC, the sale of this company is aligned with the divestments announced by the group in its Strategic Plan, the main lines of which are to reduce debt by 2.2 billion euro, focus on profitable businesses and regions, as well as adjusting structural costs. Banco Sabadell participated in the transaction as an advisor to FCC.

Since the Strategic Plan was implemented in late March 2012 by the Group's Vice-Chairman and CEO, Juan Béjar, FCC has reached an agreement to sell 50% of its stake in Proactiva to partner Veolia for 150 million euro, and has sold its 49% stake in its water subsidiary SmVak (Czech Republic) for 97 million euro as well as a 39% stake in Enniskillen Hospital (Northern Ireland) for 23 million euro. FCC reached an agreement to sell 51% of the company holding its renewable energy assets to Plenium Partners at the end of 2013, reducing Group net debt by 763 million euro.

Other divestments completed in the period include the W Barcelona (Hotel Vela) in Barcelona, in which FCC had a 25% stake, and Autopistas del Valle in Costa Rica, which it sold for 13 million euro, in addition to other real estate assets.

About Corpfin Capital
Corpfin Capital, which has been managing venture capital funds since 1990 and is headed by Carlos Lavilla and Patrick Gandarias, currently has 11 companies in portfolio and around 350 million euro under management. It is one of the leading independent venture capital firms in Spain, and is specialized in acquiring companies with strong growth prospects.

Following the success of its previous funds, Corpfin Capital will shortly close its new fund, Corpfin Capital Fund IV, with a target amount of 200 million euro. It has investment commitments from Spanish and foreign institutional investors, mainly pension funds, funds of funds, insurers and Fond-ICO.
Notable investments by its most recent fund include the sports group Ingesport, pet retailer Kiwoko, and ICT solutions provider Acuntia. FCC Logística is expected to be the first investment by the new fund.