The Japanese Sojitz, the main shareholder of Nexus, negotiates the purchase of the ACS transportation subsidiary

The ACS group does not stop searching for partners to sell the transport division of its Australian subsidiary UGL. The operation, valued at around 1 billion Australian dollars (565 million euros at the current exchange rate), faces the final stretch after having attracted the interest of various international actors in recent months. The last to knock on the door of the business controlled by Cimic – a leading subsidiary of ACS in Australia – has been the Japanese industrial group Sojitzmain shareholder of the renewable energy marketer Nexus.

The Japanese conglomerate, which participates in a wide range of businesses worldwide, has placed itself the first in the local press pools after expressing interest in the ACS business. According to The Australian, The group appears in the final offers along with other private equity suitors after other interested actors such as the Australian Service Stream either Ventiaa former subsidiary of the Spanish company, withdrew from the auction in the initial phase. The operation has also attracted the American venture capital manager Platinum Equitylargest shareholder of the Spanish environmental services giant Urbaser.

For the Japanese group, the interest in UGL is part of its desire to establish itself in the Australian market after acquiring Capellathe main developer of public infrastructure in the country. The operation, formalized with Lendlease last January in exchange for 470 million Australian dollars (266 million euros), has reinforced its position in this region with control of this firm involved in hospital, road, light rail and metro projects in the energy, social infrastructure and transportation sectors.

From another angle, UGL’s transportation activities would find a natural fit in its growth plans in this sector, where is already present through its transportation and infrastructure division. In this business, which combines with six other areas – automotive, energy, metals, chemicals, agriculture and retail -, the Japanese company acts as a sales consultant for commercial aircraft and defense systems and aircraft leasing, in addition to managing services for airplanes and executive aircraft, management of airports and industrial parks, industrial infrastructure and urban development, railway infrastructure and maintenance, repair and overhaul services for railway carriages.

The sales process is being managed by Macquarie Capitalhired by ACS to advise on the divestment of its transportation business, which specializes primarily in the construction, operation and maintenance of railway infrastructure and rolling stock. UGL was acquired by Cimic in 2016 after launching a public takeover bid (takeover bid) for the 86.16% that it did not control at that time for 525 million Australian dollars (356 million at the exchange rate at that time). Since then, the firm has positioned itself as a reference in this market, behind Downer, with Australian state governments as its main clients.

The transport unit, owned by Cimic, manufactures buses, maintains rail infrastructure and oversees public transport services in five major cities, including Melbourne, Sydney, Canberra, Adelaide and Auckland. Financially, it generates approximately $1.5 billion in annual revenue. (850 million euros) and more than 100 million dollars in profits (56 million euros).