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Graña y Montero sells GMD stake to PE firm Advent International

Engineering and construction company Graña y Montero has closed the sale of its stake in GMD, a subsidiary of the Group specialising in information technology and telecommunications, to private equity firm Advent International.

Advent is acquiring the Group’s majority ownership stake in GMD for USD84.7 million, with an initial payment of USD37.3 million and subsequent payments subject to milestones agreed between the parties. The agreed price is equivalent to 8.2 times GMD’s 2016 EBITDA.
 
The Group decided to divest GMD after a thorough analysis of the future business strategy, which will focus on the areas of engineering and construction, infrastructure and real estate, where it has extensive experience.
 
GMD has been part of the Graña y Montero Group for more than 30 years. The company was founded in 1984, and has more than three decades of experience developing and successfully implementing IT solutions that generate value to the business processes of its clients. After years of competing with large multinationals, GMD has emerged as the leading Peruvian IT services firm.
 
Luis Diaz Olivero, Chief Executive Officer of Graña y Montero, says that Advent is a leading global private equity firm. It has a strong investment history in the technology sector and is the right shareholder to drive growth and create value in GMD. “We believe Advent is a strong candidate to acquire the company because it has the resources to capitalise on GMD’s capabilities and maximize its future growth potential.”
 
In addition, Adolfo Vinatea, Director of Advent in Peru, says that GMD is a leading company with a wide range of experience in outsourcing services and information technology. “GMD is the largest local player in the fragmented, but fast growing IT services market in Peru. This acquisition presents an opportunity to build a regional, integrated IT outsourcer in the Andean region and we are very excited to partner with GMD’s experienced management team and help accelerate the current value creation processes.”
 
Moreover, Diaz says that with this transaction, Graña y Montero has reached an amount close to USD193 million in asset sales. “This transaction best positions the company to accelerate debt reduction and focus on financial strengthening, particularly, after the termination of the Peruvian Southern Gas Pipeline contract.”
 

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