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VINCI finalizes the acquisition of the Northwest Parkway section of the Denver ring road (Colorado, USA)

19. 04. 2024 - 08:30 - Events - Staaten von Amerika

◼ Financial closing of the acquisition of 100% of the Northwest Parkway section of the Denver ring road (Colorado, USA)
◼ A major acquisition for VINCI Concessions in the USA
◼ A high-quality asset: very long concession term, robust regulatory framework, strong potential for operational synergies

VINCI Concessions, via its subsidiary VINCI Highways, has finalized the acquisition of 100% of NWP HoldCo LLC, the concession company for Northwest Parkway, a 14 km tolled section of the Denver ring road (Colorado), for around $1.2bn (equity value at 100%).

First major acquisition for VINCI Concessions in the USA, this transaction fits within VINCI Group’s strategy to strengthen its presence in North America.

Northwest Parkway is a strongly performing asset with substantial growth potential ahead:

• Strategic location in Denver: this tolled highway section serves important economic, touristic and residential areas in the capital city of Colorado, one of the most dynamic US states. It facilitates connections to major transportation infrastructure including Denver international airport, Interstate 25 and US 36 highway.

• Positive traffic outlook: the Northwest Parkway section will benefit from the dynamism of the Colorado economy with strong demand for road mobility notably thanks to several real estate developments currently under construction along the corridor. In the longer term, the opening of the last section of the Denver ring road - which will then encircle the entire city - should generate additional traffic on the Northwest Parkway section.

• Protective contractual terms: the concession contract includes a toll indexation formula linked to economic growth, inflation and a floor against downturns in these values.

• A long-term contract: the Northwest Parkway concession, which runs until 2106, has the longest remaining term (83 years) in the USA highway sector today.

• Operational synergies: Northwest Parkway will benefit from VINCI Highways’ experience in the USA, which is the concessionaire, under the Ohio River Bridges public-private partnership, for the link between the states of Indiana and Kentucky, near Louisville. Furthermore, through its subsidiary ViaPlus, VINCI Highways manages free-flow ECT contracts in California and Texas on behalf of those states' public authorities.

VINCI Highways will apply its expertise to optimize management of the infrastructure by bringing some services back in-house, to improve user experience and travel time reliability thanks to levers such as variable tolling.

In 2023, Northwest Parkway recorded 7.2 million transactions, up 6% compared to 2022. Its revenue has risen 8% a year on average since 2014, with EBITDA doubling over the same period.

A conference call on the acquisition of Northwest Parkway and recent strategic moves by VINCI Airports (acquisition of a majority stake in Edinburgh airport, extension of the Aerodom concession in the Dominican Republic) will be organised on Monday 29 April 2024 at 6.00pm Paris time.

To participate, please connect in advance to the following link to obtain an individual access code to this event:https://register.vevent.com/register/BI929b8adfcff24ac3ac494fd41fc6c584