Opus has acquired VTV Norte and VTV Metro with concessions in the province of Buenos Aires, Argentina for €12.3 million.
The companies hold approximately €1.5 million in cash at the closing of the acquisition. The transaction is financed through existing cash. The VTV companies will be consolidated into Opus accounts from date of acquisition. For the past two decades, VTV Norte has operated a concession for five vehicle inspection stations in Buenos Aires and inspecting 330,000 vehicles a year. The concession expires at the end of 2018, and negotiations are underway for a further extension.
VTV Metro has a concession until 2026 to operate two inspection stations in the city of Buenos Aires. In 2017, the first calendar year of its operation, the company inspected 145,000 vehicles. In 2017, VTV Norte and VTV Metro had combined revenues of approximately €10 million based on 2017 end of year exchange rate.
The acquisition of VTV Metro and VTV Norte will strongly improve Opus’ overall position within the Argentinean and Latin American vehicle inspection market. It will contribute positively to Opus’ overall EBITDA and return on capital employed (ROCE) from the date of acquisition. No one-off incremental expenses are expected as a result of the completed transaction. VTV Norte and VTV Metro will continue to operate under their current names and their highly experienced management team and staff will also remain. VTV Norte has successfully operated its concession for 20 years; both companies are active in the local vehicle inspection association.
“We are looking forward to working with the governments of the province and city of Buenos Aires to deliver safer roads and cleaner air for citizens,” said Alfredo R. Granai, Opus’ President, Latin America. “We believe that with Opus’ world-class technology solutions and operational excellence, we can further strengthen the service offering of the VTV companies to the city and province of Buenos Aires and its people. I want to express a warm welcome to the 110 VTV employees in Argentina as they are becoming a part of the Opus family.”