Macquarie Goodman is increasing its foothold in Europe with the takeover of Eurinpro International SA, a logistics property developer for $A597 million.
Eurinpro is based in Europe’s smallest country of Luxembourg, however, the company has developed over €850 million worth of projects across Europe.
The company currently has over 425,000 sqm of projects under development.
Macquarie Goodman’s chief executive Gregory Goodman said the group has identified the United Kingdom and Europe as a significant opportunity.
He added that the combination of the Arlington Securities and Eurinpro businesses will allow the group to provide total solutions to customers and investors.
Eurinpro will gives Macquarie Goodman instant scale across major logistics markets and a team with the capabilities to capitalise on growth opportunities throughout the region.
“The transaction is highly strategic for Macquarie Goodman and we see a strong opportunity to significantly expand our European business. We have acquired two specialist businesses that have been truly successful in their own right. Importantly, they complement each other and our business model.” Goodman concluded.
The purchase price of €352 million represents 6.2x forecast CY06 operating profit of $A97 million.
The Eurinpro business will continue to operate as a distinct business unit with oversight from a European executive committee including Gregory Goodman and Arlington’s Jeff Pulsford.
In addition, Bart Verhaeghe, chairman and chief executive of Eurinpro, will become a member of the Macquarie Goodman Global Executive Committee that manages the Australian, Asian and European businesses of Macquarie Goodman.
Eurinpro has established a leading European position for development of and investment in state-of-the-art logistics real estate,” Verhaeghe said.
“There is undoubtedly considerable scope for further growth in and outside the European market. I am delighted that with the combined expertise and resources of Macquarie Goodman behind it, Eurinpro now sees tremendous opportunities to build on our present position and grow its share in both existing and new markets,” he added.
The acquisition will be funded by the issue of escrowed Macquarie Goodman scrip to the vendors, an institutional placement to raise $A350 million and a securityholder purchase plan expected to raise $A50m.
Following the purchase and proposed equity raising Macquarie Goodman’s gearing is expected to be 33% providing flexibility to make future acquisitions.
Macquarie Bank acted as sole financial adviser to Macquarie Goodman in relation to the acquisition of Eurinpro.
The institutional placement to raise $A350 million has been fully underwritten by Macquarie Equity Capital Markets and JPMorgan.
By Adam Parsons
