The Australian industry fund-owned IFM Investors has agreed to buy a 49% stake in the Spanish water management company, FCC Aqualia, for 鈧�1.02bn from Fomento de Construcciones y Contratas.
FCC Aqualia is the fourth-largest water management company in Europe, with 23% market share of Spain鈥檚 water management market.
The deal marks IFM Investors鈥� entry into this market in Continental Europe.
The Melbourne-based fund manager, which manages more than AUD100bn (鈧�62.7bn) in infrastructure assets globally, has 15 years鈥� experience in the sector.
FCC Aqualia is the FCC parent company for end-to-end water management. It controls all stages of the water cycle, from the supply of drinking water to treatment of wastewater.
Frederic Michel-Verdier, IFM Investors鈥� executive director 鈥� Europe, described the acquisition as 鈥渁 rare opportunity鈥� to invest in a fast-growing, international leader in water management.
鈥淲e admire the company鈥檚 strategy of ambitious but prudent growth outside its domestic market, and its commitment to customer service,鈥� he said.
The transaction is subject to relevant merger control approvals and the consent of FCC鈥檚 senior lenders. Financial close is anticipated by the end of August.
