American Tower Buys Large Towers Portfolio in Brazil
Published on: 15th Jun 2014
Note -- this news article is more than a year old.
American Tower has announced that it is buying a Brazilian tower operator for just under a billion dollars.
The company said that it has signed a deal to buy BR Towers, a privately owned tower company which owns roughly 2,530 towers, and has the exclusive use rights for approximately 2,110 additional towers.
The purchase price of approximately 2.18 billion Brazilian Reais, (US$978 million) subject to customary adjustments, will be satisfied with a combination of cash and the assumption of certain existing indebtedness.
American Tower anticipates that the towers will generate approximately US$131 million in annual run rate revenues and approximately USD81 million in annual Gross Margin and anticipates that the acquisition will be immediately accretive to Adjusted Funds From Operations upon closing.
The transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in the fourth quarter of 2014.