American Tower Corp. (NYSE: AMT) has entered a definitive agreement to acquire all of the
outstanding common membership interests of MIP Tower Holdings LLC and related companies for
approximately $4.8 billion, AMT announced Friday.
MIP, a private real estate investment trust, is the parent company of Global Tower Partners.
GTP, majority owned by Macquarie Infrastructure Partners, owns and operates about 5,400 domestic towers and 800 domestic property interests under third-party communications sites, and has management rights to more than 9,000 domestic sites, primarily rooftop assets, according to a news release. GTP also owns 500 communications sites in Costa Rica.
American Tower expects to use cash on hand and revolving credit to satisfy some $3.3 billion of the purchase price, and to assume about $1.5 billion of existing debt for the rest of the cash consideration for the acquisition and other previously announced acquisitions.
American Tower expects the portfolio will generate $345 million in revenues and $270 million of gross margin in aggregate in 2014, and is anticipated to be immediately accretive to Adjusted Funds From Operations ("AFFO") upon closing.
"GTP has constructed and acquired an outstanding U.S. portfolio of tower, rooftop and land assets, which is highly complementary to that of American Tower," Jim Taiclet, chairman, president and CEO of American Tower, said in a statement.
Characterizing GTP's management of the assets as "excellent," he added that "with all four major domestic wireless carriers engaged in aggressive multiyear 4G LTE deployments, we believe our acquisition of GTP solidifies our path to achieving our strategic goals related to growing our AFFO over the next five years."
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2013.
American Tower was advised by Goldman, Sachs & Co. and EA Markets Securities LLC, as financial advisors, and Clifford Chance US LLP and Sullivan & Worcester LLP, as legal advisors. GTP was advised by Deutsche Bank Securities Inc. as exclusive financial advisor.
Source: American Tower Corporation.
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