Grupo Argos, a Colombian infrastructure, energy and cement investor, has signed a share purchase agreement with West Street Infrastructure Partners III, investment fund managed by Goldman Sachs, so that the latter acquires 50% of the ports operator Compañía de Puertos Asociados (Compas).

The total value totals COP407 billion (US$137 million), which represents a 2.5-fold return on the investment made by Grupo Argos since it acquired these port assets. Moreover, the transaction is equivalent to 24 times the EBITDA generated by Compas in 2016.

Grupo Argos’ investment in Compas dates back to 2012, when the company, as part of the division - merger, received port assets that belonged to Cementos Argos. Subsequently, Grupo Argos contributed these assets for the creation of Compas in exchange for a 50% share in this company.

As part of its active role as manager and administrator of an infrastructure portfolio, Grupo Argos, through its investment in Compas, successfully transformed a group of terminals (mainly bulk carriers primarily engaged in the import and export of cement and coal) into an integrated multipurpose logistics platform with first-rate international partners such as APM Terminals (Maersk Group) and the Singapore Port Authority.

Over this last year, Grupo Argos has executed a series of initiatives aimed at consolidating as an infrastructure parent company focused on and consistent in its allocation of capital. Proof of this is the acquisition of an additional 44% of Odinsa shares, the purchase of 30% of Opain and its subsequent consolidation and, finally, the clearing of the Odinsa portfolio, which, alongside Grupo Argos, divested its port and energy generation assets. These actions were possible through the divestment of non-strategic assets, allowing the leverage levels to be kept stable.

With transactions like this, Grupo Argos expects to continue to actively manage its investment portfolio by reallocating capital to those initiatives that allow the Company to maintain a sustainable, profitable and value-creating growth for its shareholders. It should be noted that, through its subsidiary Odinsa, Grupo Argos is currently assessing growth options in both airports and roads, through the structuring of private-initiative PPPs and the processing thereof with the respective granting authorities.

Jorge Mario Velásquez, CEO of Grupo Argos, said:

“Grupo Argos, acting as an active holding company in the management of its portfolio and playing the role of strategic architect, incorporated the road and airport concessions business as part of its central focus. With this objective in mind, over this last year, a series of investments and divestments have been made in order to give focus to the concessions PRESS RELEASE portfolio in Latin America. This transaction consolidates Grupo Argos as a parent company with investments in infrastructure focused on the cement and concrete, energy, and road and airport concession businesses, by maintaining financial flexibility that allows it to manage its capital efficientl.”