Financial closing of the acquisition of 100% of the Northwest Parkway section of the Denver ring road (Colorado, United States),A major acquisition for VINCI Concessions in the United States,High-quality infrastructure: very long remaining life , protective regulatory framework, significant potential for operational synergies.
VINCI Highways, a subsidiary of VINCI Concessions, has finalized the acquisition of 100% of NWP HoldCo LLC, concession company of Northwest Parkway – 14 km toll section of the Denver ring road (Colorado) – for a price of approximately 1.2 billion dollars (100% equity value).
VINCI Concessions’ first significant acquisition in the United States, this operation is part of the VINCI group’s strategy, aiming to strengthen its presence in North America.
Northwest Parkway is a high-performing asset, offering solid growth prospects:
• Strategic location in Denver: this section of toll highway serves important economic, tourist and residential areas in the capital of the state of Colorado, one of the most dynamic in the United States. It facilitates connections to key transportation infrastructure, such as Denver International Airport, Interstate 25 and US Route 36.
• Positive traffic outlook: the Northwest Parkway section will benefit from the strong dynamics of Colorado’s economy, resulting in an increase in road mobility thanks in particular to several real estate programs currently under construction along the corridor. Ultimately, the opening of the final section of the Denver ring road – which will then completely circle the metropolis – should generate additional traffic on the Northwest Parkway section.
• Protective contractual provisions: the concession contract provides for an indexation of the toll according to economic growth, inflation and a floor in the event of a drop in these.
• Very long residual life: with an expiry in 2106, the Northwest Parkway concession currently has the longest remaining life (83 years) in the highway sector in the United States.
• Operational synergies: Northwest Parkway will be able to draw on the experience acquired by VINCI Highways in the United States, which completed the Ohio River Bridges, a link between the states of Indiana, as part of a public-private partnership. and Kentucky, near Louisville. Furthermore, through its subsidiary ViaPlus, VINCI Highways manages free flow electronic toll services on behalf of the competent public authorities in California and Texas.
VINCI Highways therefore intends to use its expertise to optimize infrastructure management by reinternalizing certain services, to improve the user experience and to make travel times more reliable thanks to levers such as variable tolls.
VINCI Highways will also deploy its environmental ambition, the objectives of which are: zero net emissions, zero waste to landfill and zero pesticides.
In 2023, Northwest Parkway generated 7.2 million transactions, up 6% from 2022.
Its revenue has grown by 8% per year on average since 2014, and its EBITDA has doubled over the period.
A conference call on the acquisition of Northwest Parkway, and on the recent strategic moves of VINCI Airports (taking a majority stake in Edinburgh airport, extension of the Aerodom concession in the Dominican Republic) will be organized on Monday April 29 2024 at 6:00 p.m. Paris time.
About VINCI
VINCI is a global player in the concessions, energy and construction sectors, employing 280,000 people in more than 120 countries. Its mission is to design, finance, build and manage infrastructure and equipment that contribute to improving daily life and mobility for everyone. Because its vision of success is global, VINCI is committed to the environmental, social and societal performance of its activities. Because its achievements are of public utility, VINCI considers listening and dialogue with all stakeholders in its projects as a necessary condition for carrying out its activities. VINCI’s ambition is to create long-term value for its customers, its shareholders, its employees, its partners and for society in general.
