Ferrovial has completed the sale of Broadspectrum to Ventia for 465 million Australian dollar (about 291 million euro). The deal is part of the divestment of Ferrovial’s services subsidiary that commenced in February 2019 and comprises the Broadspectrum businesses in Australia and New Zealand. The figure does not include Ferrovial’s 50% stake in a joint venture with a local partner, for which there is an irrevocable purchase offer issued by Ventia amounting 12 million euros.
The deal was completed after receiving approval from regulators and competition authorities.
Broadspectrum and Ventia are highly complementary businesses. Ventia is a specialist infrastructure services provider in Australia and New Zealand. Broadspectrum reported a backlog of 4,064 million euro at the end of 2019.
Ferrovial acquired Broadspectrum in May 2016, including not only its operations in Australia and New Zealand but also those in the United States, Canada and Chile, which are not covered by this deal. Following the acquisition, those three territories were integrated into Ferrovial Services International.
Moving towards sustainable infrastructure
Ferrovial classified all its Services businesses as “available for sale” as of 31 December 2018. This decision was the result of an overall strategic review of all the businesses aimed at focusing the company’s future on the development of infrastructure, the prime source of value and returns for its shareholders.
In that same vein, this year Ferrovial adopted the Horizon 24 Plan, a strategy for 2020-2024 in which the company will focus on the development, construction and operation of sustainable infrastructure. The plan pursues profitability based on 11% annual EBITDA growth. The objective is excellence in the development and management of sustainable infrastructure through innovation, efficiency, and the selection of businesses and markets.
The sale of Broadspectrum is the first milestone in that process. The divestment of the other Ferrovial Services businesses (including the Spanish, UK and International markets) is ongoing.