Spanish PE firm in €916m construction deal

Inversiones Ibersuizas has joined a consortium to acquire a 25.7 percent stake in a Spanish construction company from French utility company Veolia Environnement.

Madrid-based private equity firm Inversiones Ibersuizas is part of a consortium that has acquired a 25.7 percent stake in Spanish construction company Fomento de Construcciones y Contratas (FCC) for €916 million ($1.1 billion).

The stake was sold by French utility company Veolia Environnement, completing the group's second deal in a week. Last Friday, the company announced it had agreed to sell Culligan International, the US-based water products manufacturer and distributor, to US private equity firm Clayton Dubilier & Rice for $610 million.

The consortium acquiring FCC was led by Esther Koplowitz, the chairwoman of the company and its largest shareholder. It also comprised Société Fonciere Financiere et de Participations (FFP), a holding company controlled by the Peugeot family.

Of the funding, Inversiones Ibersuizas reportedly contributed €220 million, with Koplowitz putting up €470 million and the remainder coming from FFP.

FCC is Spain’s largest construction company with a market capitalisation of just under €4 billion. 

Inversiones Ibersuizas is a listed private equity firm founded in 1989 and backed by investors including Spanish bank Banco Pastor and Spanish private equity house Inver-Alia. The firm has a team of 9 investment professionals and a net asset value of approximately €140 million.