3i Infrastructure plc (“3i Infrastructure” or “the Company”) has signed an agreement to syndicate a c.27% stake in TCR to 3i Zephyr, a co-investment vehicle managed by 3i Investments plc and funded by six institutional investors. Completion is expected to take place later this quarter.
TCR is the leading global provider of Ground Support Equipment (“GSE”) rental solutions and services, supporting air industry customers in their ground handling processes. The business is present in over 160 airports (compared with 100 at acquisition), with more than 30,000 GSE assets in its rental fleet (compared with 23,000 at acquisition).
3i Infrastructure’s holding in TCR will decrease from c.96% to c.69%, for proceeds of c.€220m, in line with the valuation of the stake acquired from funds managed by DWS on 31 October 2022. The proceeds will be used to repay part of the Company’s outstanding RCF balance.
Following completion, 3i Investments plc, the Company’s Investment Manager, will continue to manage c.96% of TCR.
Scott Moseley and Bernardo Sottomayor, Managing Partners and Co-Heads of European Infrastructure, 3i Investments plc, commented:
“This transaction allows 3i Infrastructure to raise additional liquidity and achieve portfolio concentration balance. We have attracted six high-quality institutional investors, demonstrating the continuing strength of demand for infrastructure investments within private capital markets. We are excited about the strong trading momentum at TCR, which is ahead of our expectations at the time of announcing the further investment, and we look forward to
continue working with TCR’s management team to take advantage of increasing demand for its full service rental model.”