American Towers to Buy Eaton Towers in $1.85 Billion Deal -- Update
May 30 2019 - 9:23AM
Dow Jones News
By Colin Kellaher
American Tower REIT (AMT) on Thursday said it agreed to buy
Eaton Towers Holding Ltd., which owns and operates roughly 5,500
communications sites in five African markets, for total
consideration of about $1.85 billion, including $200 million in
assumed debt.
The Boston communications real-estate investment trust said it
expects the acquired assets to generate about $260 million in
property revenue and $165 million in gross margin in the first full
year.
American Tower, which currently has a portfolio of more than
170,000 communications sites, earlier this month said it expects
2019 property revenue of $7.135 billion to $7.285 billion.
Eaton, based in London, has communications sites in Burkina
Faso, Kenya, Ghana, Niger and Uganda. American Tower said it
expects expanded relationships with key Eaton tenants to help drive
nearly 3,000 additional new builds over the next decade.
Private-equity firm Capital International Private Equity Funds
owns a majority stake in Eaton, whose other investors include
private-equity firms Development Partners International LLC and
Ethos Private Equity, along with the venture arm of U.K. bank
Standard Chartered PLC (STAN.LN).
Eaton last year postponed plans for an initial public offering
over concerns about valuations, Bloomberg reported in June. Eaton
had been seeking a valuation of about $2 billion in a sale in
London and Johannesburg, according to the report.
American Tower said it will fund the acquisition of Eaton, which
it expects to complete by the end of the year, with cash on hand
and debt.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 30, 2019 09:08 ET (13:08 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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