CALGARY, Alberta, Sept. 12, 2018 (GLOBE NEWSWIRE) -- – ATCO Ltd. (TSX: ACO.X, ACO.Y)
ATCO today announced that it is further diversifying its extensive portfolio of infrastructure assets and services with an agreement to acquire 40 per cent of Neltume Ports, a leading port operator and developer in South America, for approximately CAD$450 million (USD$340 million). Neltume Ports, a subsidiary of Ultramar, operates in 16 port facilities and three stevedoring businesses primarily located in Chile and Uruguay.
“This acquisition represents an important milestone in the execution of ATCO’s long-term strategy to diversify and complement our portfolio of existing businesses and geographies in industries that are fundamental to global growth and prosperity: housing, real estate, energy, water, transportation and agriculture,” said Nancy Southern, Chair & Chief Executive Officer with ATCO. “We are excited to announce our investment in Neltume Ports which further builds and strengthens our existing partnership with Ultramar. Both of our companies view South America as an area poised for significant growth.”
Headquartered in Santiago, Chile, Neltume Ports’ portfolio is highly diversified across both cargo types and volume mix. Neltume Ports handles nearly 51 million tonnes of product annually, including copper, forestry products, consumer goods and agricultural products, and employs approximately 3,900 employees.
“After a competitive sale process, we are proud to announce ATCO as our strategic partner – a partner with shared values and cultural fit with Ultramar,” said Richard von Appen, Chairman of Ultramar. “We have defined a growth strategy with both sizeable and attractive opportunities that support the company’s long-term regional development. This agreement reaffirms Neltume’s commitment to the port sector and represents a great opportunity for ATCO to meaningfully contribute to the company’s growth plans in a highly dynamic South American infrastructure market.”
ATCO will fund its investment in Neltume Ports with a combination of cash on-hand and funds from committed credit facilities, and later refinance a portion through a capital markets transaction. ATCO will acquire a 40 per cent interest in Neltume Ports through the issuance of new shares from Neltume Ports. Funds from ATCO’s investment will be used by Neltume Ports to finance opportunities for growth.
The acquisition is expected to be accretive to ATCO’s earnings per share in the first full year of ownership, as well as deliver sustainable profitability through the execution of Neltume’s growth plans.
The transaction complements ATCO’s existing businesses, which include electricity and natural gas infrastructure, modular construction and logistical support services, and further cements ATCO’s position as a premier global infrastructure holding company.
ATCO partnered with Ultramar in 2016 through ATCO-Sabinco, which provides modular solutions, container offices and workforce mining camps in Chile. Recently, the company completed construction on a new, 100,000 sq. ft. manufacturing facility.
Webcast and Teleconference:
ATCO will host a webcast today, Wednesday, September 12, 2018 at 11:00 a.m. EDT (9:00 a.m. MDT), to discuss this investment. Nancy Southern, Chair & Chief Executive Officer, Siegfried Kiefer, President & Chief Strategy Officer, and Dennis DeChamplain, Senior Vice President & Chief Financial Officer will deliver remarks with slides. There will not be a question and answer session.
The webcast will be available on ATCO’s website, and a copy of the presentation and the webcast will be archived and accessible for replay. Analysts, members of the media and other interested parties are also invited to listen in by calling 1-855-859-2056. The passcode is 1096348.
With approximately 7,000 employees and assets of $22 billion, ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (electricity generation, transmission, and distribution); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, energy storage, and industrial water solutions); Commercial Real Estate; and Retail Energy (electricity and natural gas retail sales). More information can be found at www.ATCO.com.
Investor Inquiries:
D.A. (Dennis) DeChamplain
Senior Vice President &
Chief Financial Officer
403-292-7502
Media Inquiries:
Spencer Forgo
Manager, Corporate Communications
403-662-8467
Forward-Looking Information:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company’s actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company’s expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/fac6813b-ce28-404f-8391-4d354e56a626