Allianz Capital Partners GmbH (ACP), Borealis Infrastructure Management Inc. (Borealis), Infinity Investments SA, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and MEAG, Munich Re (Group)’s asset manager, (Consortium), signed an agreement to acquire 100% of Autobahn Tank & Rast Holding GmbH from Terra Firma Capital Partners and a fund managed by Deutsche Asset and Wealth Management for an undisclosed sum.
Tank & Rast is Germany’s largest and leading owner and concessionaire of a network of motorway service areas providing essential services to 500 million visitors each year. The Tank & Rast network comprises around 390 service areas, approximately 350 petrol stations and some 50 hotels on Germany’s highway network.
The Consortium is a group of like-minded investors with long-term investment horizon and significant investment experience across various sectors and in Germany, Europe and globally. All Consortium members pursue a strategy of generating stable and predictable returns over the long term.
"As market leader in Germany, Tank & Rast is an attractive investment for all of us due to its long-term and stable investment characteristics and its stable regulatory and contractual environment," said a representative of the Consortium. "Tank & Rast has a proven strategy and track record of steady operational performance. We look forward to working with its management to continue Tank & Rast’s exceptional long-term success story."
"The acquisition is an important step in our ambition to substantially grow our portfolio of high-quality infrastructure companies and to diversify across sectors and countries. We are committed to support management in sustainably growing Tank & Rast in close co-operation with all stakeholders and to further improve its essential services for all customers," said Christian Fingerle, Chief Investment Officer responsible for infrastructure investments at Allianz Capital Partners.
"By investing in this German core infrastructure asset, we are further diversifying our portfolio with manageable risks and attractive returns," says MEAG Managing Director Holger Kerzel. "With their calculable income, infrastructure investments are ideal for covering long-term payment obligations in Munich Re (Group)'s core business of insurance."
"On behalf of Borealis Infrastructure, we are very pleased to announce our first investment in Germany alongside like-minded, long-term German and international investors. Germany's stable concession framework and strong economy make it an ideal destination to invest. Tank & Rast provides a strong match for OMERS long-term obligations to its plan members, and represents the kind of rare, high-quality business that fits with OMERS strategy to increase its exposure to infrastructure," said Michael Rolland, Chief Investment Officer, OMERS Private Markets.
"Tank & Rast has made great progress under the ownership of Terra Firma and Deutsche Asset & Wealth Management," said Dr Karl-H. Rolfes, CEO of Tank & Rast. "We are now looking forward to working with our new owners on further expansion and innovation across the network. We will continue investing in new and existing sites as well as launch new product initiatives and partnerships to the benefit of our customers. With their long-term commitment, their strong financial position and an outstanding reputation our new shareholders will be excellent new owners who are well aware of the specific public service mandate of Tank & Rast and who will support the continuation of our modernisation strategy."
The transaction is conditional on customary regulatory clearances from the competent authorities in Germany and is expected to close during the second half of 2015.