Sweden-based Intrum AB (publ), through Lindorff Holding Spain, has agreed to acquire 80% of the share capital of Solvia Servicios Inmobiliarios SL, the real estate management unit of Banco de Sabadell SA.
Solvia, which has about 700 employees and more than €21 billion in AUM, was valued at €300 million.
Intrum said it would pay an initial consideration of approximately €190 million in the first quarter of 2019 and a deferred payment of €50 million in 2022. Intrum noted that it would fund the acquisition through existing cash facilities and available liquidity.
Sabadell, which would retain 20% of Solvia, said the consideration could increase by up to €40 million if conditions on Solvia's business units are met. The Spanish lender added that it will generate a capital gain of €138 million and a 15-basis-point increase in fully loaded common equity Tier 1 ratio from the transaction, which is expected to close in the first half of 2019, subject to customary approvals and authorizations.
In October, the Spanish lender was said to have reached an advanced stage of selling Solvia, with Alantra mandated to carry out the process. U.S. private equity firm Cerberus Capital Management LP was reportedly one of the bidders.