Babcock buys bulk cargo port operator in Italy

Babcock Infrastructure Acquires Italian Port Operator (Update1)
By Angela Macdonald-Smith

Aug. 6 (Bloomberg) -- Babcock & Brown Infrastructure Group, an Australian owner of ports, gas and power lines, bought a majority stake in Terminal Rinfuse Italia SpA for A$92 million ($79 million), its fourth port acquisition in 18 months.

The acquisition of the 50.3 percent stake in Italy's largest dry bulk port operator, known as TRI, will immediately add to cash flows, Sydney-based Babcock & Brown Infrastructure, or BBI, said today in a statement to the Australian Stock Exchange.

Babcock Infrastructure, managed by investment bank Babcock & Brown Ltd., said in May it was in exclusive talks to buy controlling interests in a range of ports in Europe, building on acquisitions in the U.K. and Spain. Terminal Rinfuse operates at Genoa, Savona and Venice ports and handles about 8 million metric tons a year of products, of which about half are coal and coke.

``TRI presents BBI with the ability to acquire a significant share in the Italian dry bulk terminal market while at the same time further strengthening its position in the strategic northern Mediterranean bulk port sector,'' the company said in the statement.

The transaction involves Babcock Infrastructure acquiring 80 percent of Estate SpA, which controls 62.9 percent of Terminal Rinfuse. Terminal Rinfuse had 2006 earnings before interest, tax, depreciation and amortization of 14.2 million euros ($20 million) and the acquisition price equates to a valuation for the company, including debt, of 139 million euros, Babcock Infrastructure said.

Babcock Infrastructure bought a majority stake in Tarragona Port Services in May and last month acquired most of Belgium's Manuport Group.