MIRA and Goldman Sachs Managed Infrastructure Funds to acquire HES International

Rotterdam, 03 Apr 2018

Macquarie European Infrastructure Fund 5, which is managed by Macquarie Infrastructure and Real Assets (MIRA), and West Street Infrastructure Partners III (WSIP), which is managed by the Merchant Banking Division of Goldman Sachs (the “Consortium”), have jointly entered into an agreement to acquire HES International B.V. (“HES” or the “Company”) from Riverstone Holdings LLC and The Carlyle Group.

HES is one of the largest diversified port terminals businesses in Europe with 18 dry and liquid bulk terminals handling a diversified range of cargoes. Completion of the transaction is subject to works council consultations, execution of definitive transaction documentation, and legal and antitrust approvals.

Transaction Highlights

• HES is a leading terminals business with strategic locations in Europe’s largest ports. HES benefits from a highly attractive catchment area, including key industrial areas in North West Europe, and from deep long-term relationships with blue-chip customers
• The Consortium consists of experienced, long-term infrastructure investors with strong track records of stewardship of critical businesses
• The Consortium intends to maintain HES‘ excellent track record in the open dry bulk segment and to continue to grow the business’ agribulk and liquid bulk terminals in Europe
• MIRA and WSIP are strongly supportive of HES‘ management team and their plan for the business
• The Consortium recognises the key role played by HES’ employees and is committed to an open and collaborative relationship with HES’ Works Council(s)

Jan Vogel, Chief Executive Officer of HES International, said: “Today’s announcement marks an important step for HES. Over the last few years, we have implemented a focused strategy that makes optimal use of our prime real estate in Europe’s key ports and allows us to adjust flexibly to future changes and opportunities that energy transition will bring to our sector. We have also built a strong pipeline of additional growth projects for both our liquid bulk and dry bulk businesses to support our strong position in each of our core businesses. We are confident that the support from MIRA and WSIP will allow HES to continue to operate as a trusted and reliable partner for its customers and deliver its ambitious growth projects.”

Leigh Harrison, European Head of MIRA, said: “As long term investors we are excited about the growth opportunities HES offers in dry and liquid bulks as well as its strong management team, market position in North West Europe and its focused strategy. Together with our partner WSIP, we are looking forward to supporting management in expanding the business through new growth projects.”

Philippe Camu, Co-Head and Co-Chief Investment Officer of the Infrastructure Investment Group within the Merchant Banking Division of Goldman Sachs, said: “We are pleased to invest in HES alongside MIRA and are keen to support the Company in its next stage of development. The HES team has built an impressive business underpinned by strong customer relationships and strategic locations in Europe’s key ports. We look forward to drawing on our experience in the sector for the benefit of HES and its stakeholders.”

Contacts

For the Consortium

CFF Communications
Stefan Simons
stefan.simons@cffcommunications.nl 
Tel: +31 (0)20 575 4073

MIRA
Nicole Grove
nicole.grove@macquarie.com 
Tel: +447765452193

WSIP
Joseph Stein
joseph.stein@gs.com 
Tel: +44 (0) 20 7774 2523

About Macquarie Infrastructure and Real Assets

More than 20 years ago Macquarie Infrastructure and Real Assets (MIRA) pioneered investment in a new asset class for institutional investors - infrastructure. Today we combine two decades of experience and expertise to identify and unlock investment opportunities in the assets that people use every day – extending beyond infrastructure to real estate, agriculture and energy. As at 30 September 2017, MIRA has assets under management of more than €94 billion invested in 137 portfolio businesses, ~300 properties and 4.5m hectares of farmland.

Globally, MIRA manages over 25 marine terminals located across Asia, Europe, and North America, ~15 of which handle dry or liquid bulk cargoes. Since 2005, MIRA has completed over USD4 billion of terminal investments in nine countries, including a range of brownfield and greenfield projects. In the bulk liquid storage sector MIRA owns and manages assets with a combined capacity exceeding 23 million cbm, placing Macquarie as the fourth largest independent owner globally. This includes Pisto in France, TanQuid in Germany and IMTT in the US / Canada.

MIRA is a division of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management, banking, advisory and risk and capital solutions across debt, equity and commodities.

About West Street Infrastructure Partners III (WSIP)

WSIP is an infrastructure investment fund managed by the Merchant Banking Division of Goldman Sachs. WSIP, together with its predecessor funds GS Infrastructure Partners I & II, are the principal investment vehicles managed by Goldman Sachs that make direct investments in infrastructure and infrastructurerelated assets and companies. The primary focus of the funds is on investment opportunities in the energy, transportation and utilities sectors.

Goldman Sachs is a leading global investment banking, securities and investment management firm. Founded in 1869, the firm is headquartered in New York and maintains offices in other major financial centers around the world.

Goldman Sachs is one of the largest infrastructure fund managers globally, having raised over $13 billion of capital since the inception of the business in 2006.

About HES

HES International B.V., founded in 1908, is a private company, headquartered in Rotterdam (the Netherlands) and is one of the largest storage and port logistics companies in Europe. Storage and handling activities comprise dry and liquid bulk terminals in North West Europe. The company’s focus is on growing its present portfolio of high quality dry and liquid bulk terminals by means of expansion of its already owned sites, greenfield development and acquisitions of existing terminals. HES International B.V. is developing a tank terminal for the storage and transshipment of petroleum products and biofuels at the Hartelstrip, on the south side of the Mississippi harbour at Maasvlakte 1. The HES Hartel Tank Terminal is planned to be operational at the end of 2019.

For more information about HES International B.V. please visit www.hesinternational.eu.