The acquired contracts, priced at roughly $260 million, include a major prize in South American airports. The Jose Maria Cordova International Airport served more than 7.6 million passengers in 2016. This airport is about to undergo a major renovation and expansion and represents a major hub for the newest generation of low cost South American carriers.
Perhaps the most undervalued airport concession in this package is the Simon Bolivar International Airport in Santa Marta. The facility, which handled just under 1.6 million passengers in 2016, is undergoing a terminal and runway expansion scheduled for completion in 2018. When fully operational, the expanded facility will be capable of handling about 4 million passengers per year and will be solidly profitable.
If/as/when the purchased contracts close, ASUR’s total passenger traffic, in conjunction with the rapid forecast ramp-up of the Cancun terminal 4, may virtually double, in the coming three fiscal years. This could produce SIGNIFICANT growth for the EBITDA and bottom lines of ASR, should such growth take place.
In the opinion of this author, the acquisition may be one of, if not THE, most accretive and transformative purchases of an airport manager, in the past decade.