Approximately 1,900 towers were acquired from Cellnex by Phoenix Tower International for $1.1 billion. With approximately 4,000 cell towers in the country, it provides Phoenix with a distinct marketing advantage.
Spanish telecom infrastructure company Cellnex has announced the sale of its Irish mobile tower unit to Boca Raton, Florida-based Phoenix Tower International (PTI) for about $1.1 Billion, equivalent to a multiple of around 24x EBITDA.
Cellnex owns approximately 1,900 towers in Ireland, including these three broadcast assets in the Dublin Mountains. It is unknown if these structures were included in the acquisition. PTI took a low profile in the U.S. regarding the acquisition announcement of Cellnex’s towers, presumably to allow the company to announce the sale and its benefits at Cellnex’s Capital Markets Day 2024 webcast scheduled for this morning.
This move comes as Cellnex, which currently manages approximately 1,900 tower sites in Ireland, aims to consolidate and simplify its corporate structure as part of its “Next Chapter” strategy. The strategy focuses on leveraging growth opportunities in its main markets and using the proceeds from this sale to reduce its debt.
Cellnex entered the Irish market five years ago with the acquisition of Cignal and expanded its presence in 2022 through the acquisition of CK Hutchinson’s infrastructure portfolio in six countries, including Ireland. The company, which manages over 138,000 sites across 12 European countries, plans to use the sale proceeds to lower its debt.
PTI, founded in 2013, is set to increase its portfolio to over 29,000 telecom towers across Europe, the US, Latin America, and the Caribbean with this acquisition.
“This acquisition demonstrates our commitment to Ireland, and we are eager to contribute to the development of robust and advanced telecommunications infrastructure that will benefit both the Irish people and our valued Mobile Network Operator partners,” said Dagan Kasavana, CEO of PTI.
In September, through its Spanish subsidiary, PTI announced that it had closed a new $1.3 billion senior credit facility in Europe to consolidate its existing loans and provide substantial additional capacity to support further growth in existing and new markets in Europe.
The transaction, subject to regulatory approvals, aligns with Cellnex’s objectives to focus on organic growth and achieve an investment-grade credit rating by S&P. It also follows Cellnex’s strategic moves, including a significant acquisition from CK Hutchison that expanded its Irish operations and a subsequent reevaluation of its asset portfolio in response to the changing economic climate and capital costs.