VINCI Airports to acquire 50.01% shareholding of Gatwick Airport, UK
VINCI Airports will be a majority shareholder of Gatwick Airport. It is set to buy 50.01% of the airport. Gatwick is the second busiest airport in the UK. In 2018, its total traffic reached 45.7 million passengers, making it Europe’s eighth busiest.
VINCI Airports is part of VINCI S.A., a French concessions construction company, which has existed since 1899. By revenue, it is the world’s largest construction company.
In a press release, the company said that the transaction would be completed in the first half of 2018. Global Infrastructure Partners, an infrastructure investment fund based in New York City, will own the rest of the shares.
Gatwick Airport Group reported total revenue of £764.2 million in the year ended 31 March 2018, with EBITDA of £411.2 million.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. In other words, revenue minus expenses (excluding interest, taxes, depreciation, and amortization).
An ‘outstanding asset’
VINCI Airports says that, subject to closing adjustments, it will pay about £2.9 billion ($3.69bn, €3.22bn) for the 50.01% stake.
The company described Gatwick Airport as an “outstanding asset with further growth potential.” Gatwick will become VINCI Airport’s largest single airport.
VINCI Airports issued the following strategic highlights
- One of London’s Airports: Gatwick is part of world’s largest O&D market – London. In 2017, London’s airports handled over 170 million passengers. O&D stands for ‘origin and destination.’
- World’s most efficient airport: Gatwick operates the world’s busiest single runway. One day in 2017, that single runway handled 950 flights, which was a world record.
- Opportunity for more capacity: Gatwick has a draft master plan to handle more air traffic. It plans to do this by optimizing the use of its current and stand-by runways.
President of VINCI Airports and CEO of VINCI Concessions, Nicolas Notebaert, said:
“Creating synergies and sharing best practices being at the core of our values, the whole VINCI Airports network will benefit from Gatwick Airport’s world-class management and operational excellence, which has allowed it to deliver strong and steady growth in a very constrained environment.”
“As Gatwick’s new industrial partner, VINCI Airports will support and encourage growth of traffic, operational efficiency and leverage its international expertise in the development of commercial activities to further improve passenger satisfaction and experience.”
VINCI Airports manages the development and operations of forty-five airports globally. It owns airports in France, UK, Japan, USA, Dominican Republic, Brazil, Chile, Costa Rica, Japan, Serbia, Cambodia, and Portugal.
In 2017, VINCI Airports handled more than 180 passengers, who flew with over 250 airlines.
“Through its expertise as a comprehensive integrator, VINCI Airports develops, finances, builds and operates airports, leveraging its investment capability, international network and know-how to optimize the management and performance of existing airport infrastructure, facility extensions and new construction.”
“In 2017, its annual revenue for managed activities amounted to €3.2 bn, for a consolidated revenue of €1.4 bn.”