The deal, which was signed by the Chairman of Mutua Madrileña, Ignacio Garralda, and his counterpart at FCC, Baldomero Falcones, covers a portfolio of 31 car parks throughout Spain, four of which are under construction and will be transferred to Mutua Madrileña once they become operational.
The acquisition is part of Mutua Madrileña's policy of diversifying its investments under its 2009-2011 Strategic Plan. Ignacio Garralda, Chairman of Mutua Madrileña, announced at the most recent Shareholders' Meeting that the insurer has begun to expand its business and diversify its assets. The deal is coherent with FCC's policy of managing its business portfolio more dynamically in order to strengthen its competitive position in the markets and sectors where it is a leader. FCC's approach is to leverage its diversification (in terms of both industries and regions). It now obtains 44% of revenues from outside Spain, and more than half of its EBITDA is produced by the Services and Renewable Energy businesses.
As a result of this acquisition, Mutua Madrileña is one of Spain's leading operators of underground car parks, a sector that is still very fragmented and offers considerable scope for consolidation, as has occurred in other European countries such as France, the United Kingdom and Germany.
The characteristics of the car park business make it an ideal fit for the investment strategy of an insurer such as Mutua Madrileña, which seeks attractive returns over the long term combined with very moderate risk.
FCC will continue to operate on-street car parks and vehicle towing services. The transaction is a step towards the group's objective of divesting non-strategic assets in order to reduce debt.
The sale is subject to a number of standard conditions precedent, such as obtainment of approval from the competent authorities, including the National Securities Market Commission (CNMV).