Spain’s Sacyr to sell half of its services and water units

MADRID (Reuters) – Spanish construction firm Sacyr plans to sell 49% of its cleaning and recycling services business and seek a partner for its water subsidiary, the company said on Wednesday with the idea of focusing on more profitable concession businesses.

Sacyr said it expects the various divestment processes to be completed within the next year.

The funds obtained by selling its services businesses will be used to reduce debt, the company added in a statement to the Spanish market regulator.

Sacyr’s infrastructure concessions business contributed 85% of its EBITDA during the first half of the year and the builder group expects its divestment operations will generate additional resources to accelerate its growth in infrastructure concession assets in different regions.

“These concessions activities, which have a low demand risk, produce stable and recurring revenues,” the company said.

Sacyr Services has cleaning contracts in Spanish cities such as Barcelona and Madrid while Sacyr Water unit has plants in some cities in Spain, Chile and Algeria.

The Spanish builder aims to have a third of it businesses in Latin America, while another 33% of its works will remain in Europe, some currently in highways and hospital concessions.

(Reporting by Corina Pons; Editing by Josie Kao)