French firm Vinci debuts on highways within the nation with the acquisition of Entrevias
- December 5, 2022
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Pátria sold control of the concessionaire, which manages 570 km of roads in São Paulo, but remains a partner
The French company Vinci has already become a well-known name in the Brazilian market for participating in a series of disputes over concessions, in auctions or direct transactions. But until now, the European giant had only effectively set foot in the airport market, where it operates eight airports – the most relevant of which, in terms of traffic, is Salvador. In a transaction signed yesterday with the private equity fund Pátria, Vinci bought control of Entrevias, entering the road concessions segment in the country.
Pátria sold 55% of Entrevias à Vinci and still owns the other 45%. The company was created by the fund in 2017, after winning the concession, which has a term of 30 years, had a fixed grant of BRL 1.4 billion and a variable grant of 3% of the concessionaire’s monthly gross revenues. Entrevias currently operates 570 km of highways that cross the state of São Paulo, from Florínea to Igarapava.
It is still a small business compared to Vinci’s size and ambitions and also the size of the local market, but it is a first step towards an operation that the group already has abroad, in countries such as Canada, the United States, the United Kingdom and Russia. The Brazilian company CCR, for example, operates more than 3,600 km of highways in the national network.
In nine months, Entrevias’ revenue was R$ 634 million, up 0.7% compared to the same period last year, driven by the 26% increase in the third quarter, when there was a greater resumption of traffic and the tariff readjustment. of 11.73%, accounted for from July. With capex still high and the impact of the lower flow at the beginning of the year, the company had a loss of R$ 44 million, one third of last year’s losses.
Vinci has operations in 120 countries, with more than 260,000 employees, in road concessions, airports, railways and stadiums. In Brazil, in addition to the capital of Bahia, it operates seven airports in the North region: Cruzeiro do Sul, Boa Vista, Tabatinga, Porto Velho, Tefé, Rio Branco and Manaus.
Source: Pipeline Value