VINCI finalizes the acquisition of the Northwest Parkway section of the Denver ring road (Colorado, USA)
19 April 2024 - 8:30AM
VINCI finalizes the acquisition of the Northwest Parkway
section of the Denver ring road (Colorado, USA)
Nanterre, 19 April 2024
VINCI finalizes the acquisition of the
Northwest Parkway section of the Denver ring
road (Colorado, USA)
- Financial closing of the
acquisition of 100% of the Northwest Parkway section of the Denver
ring road (Colorado, USA)
- A major acquisition for VINCI
Concessions in the USA
- A high-quality asset: very long
concession term, robust regulatory framework, strong potential for
operational synergies
VINCI Concessions, via its subsidiary VINCI
Highways, has finalized the acquisition of 100% of NWP HoldCo
LLC, the concession company for Northwest Parkway, a 14 km tolled
section of the Denver ring road (Colorado), for around $1.2bn
(equity value at 100%).
First major acquisition for VINCI Concessions in
the USA, this transaction fits within VINCI Group’s strategy to
strengthen its presence in North America.Northwest Parkway is a
strongly performing asset with substantial growth potential
ahead:
- Strategic location in
Denver: this tolled highway section serves important
economic, touristic and residential areas in the capital city of
Colorado, one of the most dynamic US states. It facilitates
connections to major transportation infrastructure including Denver
international airport, Interstate 25 and US 36 highway.
- Positive traffic
outlook: the Northwest Parkway section will benefit from
the dynamism of the Colorado economy with strong demand for road
mobility notably thanks to several real estate developments
currently under construction along the corridor. In the longer
term, the opening of the last section of the Denver ring road -
which will then encircle the entire city - should generate
additional traffic on the Northwest Parkway section.
- Protective contractual
terms: the concession contract includes a toll indexation
formula linked to economic growth, inflation and a floor against
downturns in these values.
- A long-term
contract: the Northwest Parkway concession, which runs
until 2106, has the longest remaining term (83 years) in the USA
highway sector today.
- Operational
synergies: Northwest Parkway will benefit from VINCI
Highways’ experience in the USA, which is the concessionaire, under
the Ohio River Bridges public-private partnership, for the link
between the states of Indiana and Kentucky, near Louisville.
Furthermore, through its subsidiary ViaPlus, VINCI Highways manages
free-flow ECT contracts in California and Texas on behalf of those
states' public authorities.
VINCI Highways will apply its expertise to
optimize management of the infrastructure by bringing some services
back in-house, to improve user experience and travel time
reliability thanks to levers such as variable tolling.VINCI
Highways will also be rolling out its environmental initiatives
aimed at achieving net zero emissions, zero waste to landfill and
zero pesticides.
In 2023, Northwest Parkway recorded 7.2 million
transactions, up 6% compared to 2022. Its revenue has risen 8% a
year on average since 2014, with EBITDA doubling over the same
period.
A conference call on the acquisition of
Northwest Parkway and recent strategic moves by VINCI Airports
(acquisition of a majority stake in Edinburgh airport, extension of
the Aerodom concession in the Dominican Republic) will be organised
on Monday 29 April 2024 at 6.00pm Paris time.
To participate, please connect in advance to the
following link to obtain an individual access code to this event:
https://register.vevent.com/register/BI929b8adfcff24ac3ac494fd41fc6c584
About VINCIVINCI is a global player in
concessions, energy and construction, employing 280,000 people in
more than 120 countries. We design, finance, build and operate
infrastructure and facilities that help improve daily life and
mobility for all. Because we believe in all-round performance,
above and beyond economic and financial results, we are committed
to operating in an environmentally and socially responsible manner.
And because our projects are in the public interest, we consider
that reaching out to all our stakeholders and engaging in dialogue
with them is essential in the conduct of our business activities.
VINCI’s ambition is to create long-term value for its customers,
shareholders, employees, partners and society in general.
www.vinci.com
This press release is an official information document of the
VINCI Group.
PRESS CONTACTVINCI Press DepartmentTel: +33 (0)1
57 98 62 88media.relations@vinci.com
- CP VINCI_Closing Denver_20240419_VA_vdéf
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