CVC purchases CLH from Ardian et al.

As part of the deal, the GP deployed capital from its Strategic Opportunities fund. The deal saw Ardian sell 10% of its stake alongside Spanish lenders Kutxabank and Abanca, which sold their 5% stake each, and Canadian institutional investor Alberta Investment Management Corporation (AIMC), which also sold a 5% stake.

According to Spanish publication Expansión, the GP purchased its stake for a €1.1bn equity ticket with the addition of a €400m credit facility and is reported as the largest shareholder in the business following the acquisition.

In a statement, the GP said that Natixis Partners was the sole arranger and underwriter of the financing that supported the acquisition.

CVC is reported to have posted the winning bid in an auction process that also included Australian asset manager Macquarie and sovereign fund Abu Dhabi Investment Authority. At conclusion of the deal, the company's shareholder base will include Canadian investor Borealis Infrastructure with a 24.77% stake, Ardian with a 15% stake and Oman Oil with a 10% stake. Meanwhile, Kutaxabank, Abanca and AIMC are reported to have fully exited their investments.

The deal is the fourth investment for CVC's 2016-vintage Strategic Opportunities fund following its investments in Pension Insurance Corporation in February 2017, as well as highway service station operator Moto Hospitality and UK roadside assistance operator RAC in December 2015.

According to a statement, the vehicle was launched in response to growing demand from LPs willing to invest for the longer term. According to press reports, the GP is set to hold a final close on $5bn for the vehicle, which has a 15-year lifespan.

Previous funding
In February 2011, Ardian acquired a 10% stake in a deal that valued the company at €3.6bn, according to unquote" data. In December 2013, the GP increased its holding to 15% and became the largest shareholder.

More recently, Global Infrastructure Partners via its Global Infrastructure Partners II vehicle acquired a 10% stake in May 2014, which it subsequently sold to Borealis in January 2016. As part of the transaction, Borealis acquired a 24.15% stake, which a few months later increased to 24.77%.

In September 2015, Ardian acquired an additional 10% stake increasing its holding up to 25%.

Company
Founded in 1927, CLH focuses on oil transportation and storage and claims 4,000 kilometres of oil pipeline and a storage capacity of eight million cubic meters in Spain. Additionally, the company claims to own the largest oil pipeline network in the UK.

The business is headquartered in Madrid and also has a presence in Oman and Ireland.

People
CVC Capital Partners – Javier de Jaime (managing partner).
Compañia Logistica de Hidrocarburos – José Luís López de Silanes (chair).

Advisers
Equity – Natixis Partners (corporate finance); KPMG (financial due diligence); Boston Consulting (commercial due diligence); Uría Menéndez (legal).

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• Topics
• Buyouts
• Infrastructure
• Southern Europe
• CVC Capital Partners
• Spain
• Ardian (formerly Axa PE)