KKR drives off with Q-Park after £2.6bn offer puts the firm in exclusive talks

 
Lucy White
KKR set to acquire car park operator Q-Park
KKR jumped into the driving seat of the sale process, reportedly pipping investment bank Macquarie to the post (Source: Pixabay)

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.

Read more: These London parking spaces sold for more than £200,000

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.

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