RIO DE JANEIRO, BRAZIL – Hidrovias do Brasil has closed an agreement for the acquisition of the Imperial South America and Imperial Shipping Paraguay companies and other assets of the same group for an amount of up to US$90 million.
According to Hidrovias do Brasil, the goal is to strengthen its position on the Paraná-Paraguay waterway, which is part of a logistics corridor in Brazil’s southern region, where it currently operates grain, cellulose and iron ore transportation.
The transaction will also be important for increasing product and currency diversification, according to the company.
The transaction was valued at US$85 million, with the eventual addition of US$5 million, to be paid over the next 4 years depending on the achievement of certain operational metrics.
The list of other assets includes 7 trunk pushers and 84 capped barges, as well as a stake in Puerto Baden, located in Paraguay. After the completion of the operation, Hidrovias do Brasil will take over the acquired companies’ client portfolio, as well as 150 employees.
The South American operation has no debt and recorded earnings before interest, taxes, depreciation and amortization (Ebitda) of US$15.9 million in 2018, US$15.4 million in 2019 and US$9.4 million in 2020, considering the fiscal year from July to June of each year.
Source: Valor