CVC DIF Sells American Roads to John Laing Group

CVC DIF, the infrastructure investment arm of global private markets firm CVC, has finalized an agreement to divest its portfolio company, American Roads, to John Laing Group, a prominent international investor focused on core infrastructure assets. This strategic exit marks a significant milestone for CVC DIF's infrastructure strategy, underscoring its commitment to generating investor returns through active asset management and disciplined portfolio rotation.

American Roads comprises a vital network of four tolled transportation facilities. Its assets include three bridges situated in Alabama, operating under perpetual concessions, and the crucial American portion of the Detroit-Windsor Tunnel. This international border crossing is a linchpin for cross-border commerce and commuter traffic between Michigan, USA, and Ontario, Canada. Collectively, these essential infrastructure assets facilitate approximately seven million journeys annually, highlighting their critical role in regional connectivity and economic activity.

Since its acquisition in 2018 through the DIF Infrastructure V fund, CVC DIF has implemented a comprehensive value creation strategy for American Roads. This involved enhancing operational efficiencies, optimizing capital structures, and fortifying the platform's resilience, particularly through navigating the unprecedented challenges posed by the COVID-19 pandemic. The firm's hands-on approach also included fostering a robust management team, positioning the company for sustained long-term growth and institutional ownership.

The transaction, which is subject to standard regulatory approvals and antitrust clearances in the United States, represents a successful realization for CVC DIF. Andrew Freeman, Partner and Head of Divestments at CVC DIF, commented on the deal, stating, "American Roads exemplifies our active ownership philosophy and long-term perspective in infrastructure investing. We've cultivated a resilient and well-managed portfolio of essential transport assets through close collaboration with management, operational enhancements, and strategic financial planning. We are confident that John Laing, with its extensive infrastructure expertise, is the ideal partner to guide American Roads into its next chapter of growth and continued service delivery."

This divestment aligns with CVC DIF's ongoing strategy of actively managing its portfolio and capitalizing on strong market demand for high-quality, long-duration infrastructure assets. The infrastructure sector continues to attract significant investor interest, driven by the essential nature of these assets and their potential for stable, long-term cash flows. The sale of American Roads to a specialized infrastructure investor like John Laing reflects the maturity and attractiveness of the U.S. transportation infrastructure market.

CVC DIF was supported in this transaction by a team of advisors including Macquarie Capital for financial advisory, A&O Sherman for legal counsel, KPMG for financial and tax due diligence, Infrata for technical, ESG, and traffic analysis, and Marsh for insurance services. The successful completion of this deal further solidifies CVC DIF's track record in the infrastructure space.