American Tower To Buy BR Towers For Purchase Price Of About $978 Mln

(RTTNews) - American Tower Corp (AMT) announced the acquisition of BR Towers S.A. in Brazil for purchase price of about 2.18 billion Brazilian Reais, or about $978 million at current exchange rates with a combination of cash and assumption of existing indebtedness. The transaction is expected to close in the fourth quarter of 2014.

American Tower agreed with GPCP V, a private equity fund managed by GP Investments, Ltd., FIP Multisetorial Plus, a private equity fund managed by Bradesco BBI, and other shareholders, to acquire BR Towers.

American Tower anticipates that the acquisition will be immediately accretive to Adjusted Funds From Operations upon closing.

American Tower anticipates that the towers will generate about 292 million Brazilian Reais (about $131 million at current exchange rates) in annual run rate revenues and about 181 million Brazilian Reais (about $81 million at current exchange rates) in annual Gross Margin.

BR Towers is a Brazilian telecommunications real estate company that is expected to own approximately 2,530 towers and the exclusive use rights for approximately 2,110 additional towers in Brazil at closing.