Adani Ports and Special Economic Zone Ltd (APSEZ) announced its entry into Europe on Thursday. The company plans to acquire Evos BV for €2.56 billion (about $2.88 billion). This acquisition is APSEZ's fifth international purchase in five years. It shows the company's growing global ambitions. APSEZ operates terminals in Israel, Tanzania, Sri Lanka, and Australia. It is also looking at 20 potential acquisition opportunities worldwide, according to CEO Ashwani Gupta.
Acquisition Details
APSEZ will pay €1.18 billion in cash to Igneo Infrastructure Partners for a 100% stake in Evos over the next 15 months. The deal will include taking on Evos's debt, making the total enterprise value €2.56 billion. Gupta noted that this acquisition meets APSEZ's criteria for international assets. These criteria include immediate contributions to revenue and profit, a double-digit return on capital employed (ROCE), and a proforma leverage ratio of less than 2.5 net debt to EBITDA. This transaction is APSEZ's largest acquisition by enterprise value so far.
Evos operates eight port-based terminals in the Netherlands, Germany, Spain, Belgium, and Malta. The total storage capacity is 6.3 million cubic meters. The company mainly handles fuels like gasoline, diesel, and sustainable aviation fuel. Karan Adani, managing director of APSEZ, stated, "Evos marks an important milestone in APSEZ’s trajectory towards handling one billion tonnes of cargo and building a truly global, integrated transport platform."
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The acquisition could strengthen APSEZ's position in the European market. This may impact its revenue streams and operational scale. Investors might see changes in APSEZ's stock performance as the company integrates Evos into its operations. Keep an eye out for updates on the completion of the acquisition and any financial disclosures from APSEZ about its European operations. Investors will also watch how this acquisition affects APSEZ's overall debt levels and future growth strategy.
Based on reporting by: livemint.com, moneycontrol.com