Car parks are more valuable than they look, if KKR's latest deal is anything to go by. The behemoth investor is set to acquire Q-Park, a network of multi-storey car parks operating across northern Europe, after making a near-€3bn (£2.62bn) offer.
Netherlands-based Q-Park, which owns more than 70 UK car parks, is currently owned by a consortium of shareholders – mainly institutional investors, including pension funds and insurance companies.
The group began a sale process last year and it seems KKR jumped into the driving seat, reportedly pipping investment bank Macquarie to the post with its €2.95bn bid.
Q-Park's supervisory and management boards today announced their unanimous support for the deal, which is still waiting for shareholder approval.
“Q-Park is a high quality company with a strong management team, a highly knowledgeable employee base and a well-diversified asset portfolio,” said Jesus Olmos, global co-head of KKR Infrastructure.
The business markets itself as more “hands-on” than the average multi-storey, with an international helpdesk, on-site employees and a focus on corporate social responsibility.
KKR's offer values Q-Park at more than 15 times its 2016 earnings before interest, tax, depreciation and amortisation (Ebitda) of €194.9m.
If the deal goes well for Q-Park's shareholders, they won't be the only ones making a profit from the car parking industry.
Sydney and Melbourne airports are making up to 70 per cent of their profits from associated car parking slots, a study from the Australian Consumer and Competition Commission revealed earlier this year.