Andino seeks M&A opportunities in Spain, Latin America - CEO
Andino Investment Holding (AIH), a Peru-based logistics and infrastructure investor, is seeking M&A opportunities in Spain and Latin America, CEO Carlos Vargas Loret de Mola told Mergermarket.
The company, which is 100% controlled by Spain-based Andino Inversiones Global [EMA:MLAIG], would primarily seek targets linked to general, bulk and liquid cargo maritime logistics services, Vargas Loret de Mola said. It is not interested in container logistics, which is already served by large global operators, he said.
AIH, which closed 2023 with approximately EUR 91m in revenue and EUR 7.2m EBITDA, is particularly interested in targets in countries including Spain, Chile, Ecuador and Colombia, but is not restricted to deals in Spain or Latin America, he said.
Other possible targets include second-line airport logistics operators involved in storage and distribution for exporters and importers, located near the runway in Spanish airport cargo sections, he said. It is particularly interested in Madrid and Zaragoza, but would also consider other airports, he added.
Andino Investment Holding signed a 30-year contract with Spanish airport operator Aena this year to operate first-line cargo services at Madrid airport, where it plans to start building a terminal in 1Q25 and begin operations in 1Q26, he said.
The acquisitions, which could take place within the next 18 months, will always involve a majority stake in the target, Vargas Loret de Mola said, adding that the company is open to receiving M&A proposals from advisors.
The company can finance deals between EUR 10m and EUR 15m using its own resources, bank financing or other debt mechanisms, he said without further specifying, noting that the final financial structure of a transaction would be determined in due course.
However, if the target is “larger and more strategic”, Andino Investment Holding could consider launching a capital increase on the Euronext market, where its parent company is listed, he said.
Andino Inversiones Global's share price is EUR 3.2 and its market cap almost EUR 65.9m as of 27 September. It has a 10% free float, the Vargas Loret de Mola family holds 68%, and the rest in the hands of private investors including Wolf Dieter Krefft, a Moneda Asset Management fund, and another fund linked to the family of former Chilean President Sebastian Piñera, Vargas Loret de Mola said.
None of the large shareholders are interested in exit options, he added.
Peru accounts for 80% of Andino Investment Holding's sales, and it aims to reach a 50-50 split between domestic and international sales within the next five years, he said.
by Adrian Espallargas in Madrid.