IHS spends $315 million boosting Brazil portfolio
IHS Towers has agreed to acquire 2,115 towers from a portfolio belonging to Grupo Torresur (GTS) for $315 million.
São Paulo Cinco Locação de Torres Ltda – known locally as SP5 – is a GTS portfolio company. It operates 2,115 telecommunication towers across Brazil and IHS said in the first year the deal is expected to deliver revenue and adjusted EBITDA of approximately US$38 million and US$36 million, respectively.
The deal is due to close this quarter, but IHS will not be taking the staff. On this point, its press statement read: "SP5 will be integrated into IHS Towers’ existing Brazilian business with no employees transferring to IHS Towers under the acquisition."
Sam Darwish (pictured), IHS Towers chairman and CEO, commented: “The acquisition of GTS’ SP5 portfolio will be our fifth transaction since we entered the region two years ago and is a testament to our continued commitment to serving the connectivity demands of Latin America. In the SP5 portfolio there are 2,115 sites strategically located across Brazil, increasing the attractiveness of IHS’ portfolio to our customers whether in Brazil or across our Latam operations.”
The acquisition will boost IHS's local portfolio to approximately 7,000 towers across Brazil, in addition to its secondary fibre network covering approximately 6.4 million homes passed, which it currently operates.
SP5’s sites are located in 25 states across Brazil. The country has 26 states and one federal district in total.
Jimmy Eisenstein, GTS chairman and CEO, said: “The sale of our SP5 portfolio represents the culmination of our strategy to create an important infrastructure business focusing on historically under-served regions of Brazil. Since our acquisition, our team has driven strong organic revenue growth, proving the critical role of SP5 to the market and resulting in an excellent return for our investors.”