American Tower has bought 100% of Global Tower Partners (GTP) for US$4.8bn from Macquarie Infrastructure Partners and its minority partners.
The Boston-based tower giant will pay the consideration with US$3.3bn in cash and assume US$1.5bn of…
American Tower has bought 100% of Global Tower Partners (GTP) for US$4.8bn from Macquarie Infrastructure Partners and its minority partners.
The Boston-based tower giant will pay the consideration with US$3.3bn in cash and assume US$1.5bn of debt.
American Tower said it will use cash on hand and borrow under its existing revolvers for the deal, which will see it acquire GTP’s parent MIP Tower Holdings, a private real estate investment trust. While Macquarie is GTP’s majority-owner, Dutch pension fund manager PGGM and management are also investors in the US towerco.
Last month a report suggested GTP – the largest privately-held tower operator in the US – was on the market. The Floridian business owns and operates 5,400 domestic towers, 800 domestic property interests under third-party communications sites, and management rights to over 9,000 domestic sites – primarily rooftop assets. It also owns 500 sites in Costa Rica.
American Tower expects the portfolio to generate roughly US$345m in revenues next year and US$270m of gross margin. The US’ largest tower operator said it plans to keep its financial and capital structures consistent with investment grade credit metrics, and intends to use the GTP portfolio to de-lever over time back to its stated target leverage range.
American Tower’s CEO and chairman Jim Taiclet said: “GTP has constructed and acquired an outstanding US portfolio of tower, rooftop and land assets, which is highly complementary to that of American Tower.
“GTP’s towers boast a high quality customer base, a strong position with respect to ground ownership and lease terms, and additional structural capacity available to facilitate future leasing activity.”
Last month American Tower bought towers from NII Holdings in Brazil and Mexico for US$811m. It has also been in negotiations with India-based TowerVision about buying its 8,000 sites but talks have reportedly stalled over valuations.
American Tower and GTP expect the transaction to close before the end of the year.
Goldman Sachs and EA Markets Securities were financial advisers to American Tower, and Clifford Chance and Sullivan & Worcester were its legal advisers. Deutsche Bank was GTP’s exclusive financial adviser.
American Tower owns and operates over 56,000 communications sites across the United States, Brazil, Chile, Colombia, Germany, Ghana, India, Mexico, Peru, South Africa and Uganda.
