3i Infrastructure plc (“3i Infrastructure”) has signed an agreement to invest approximately £185m to acquire 100% of Infinis plc and its subsidiaries, which together own the landfill gas (LFG) interests of the Infinis Group.
Infinis is the leading generator of electricity from LFG in the UK. As at June 30 2016, Infinis had 121 operating sites and 7 outsourced sites geographically dispersed across the UK and had power generation installed capacity of over 300MW at its sites.
3i Infrastructure is purchasing Infinis from the Infinis Group. The Infinis Group is 100% owned by funds managed by Terra Firma, a leading European private equity firm.
Completion is anticipated to take place by the end of November 2016. Once completed, 3i Infrastructure will have invested all of the cash from its capital raise in June 2016.
Richard Laing, chairman of 3i Infrastructure plc, commented: “We are very pleased to have acquired Infinis, the largest landfill gas business in the UK. The strong cash generation profile of Infinis is a natural fit for 3i Infrastructure and complements the existing portfolio well.”
Ben Loomes and Phil White, managing partners at 3i Investments plc, added: “Our long-term plans for the business primarily involve a continuation of management’s existing focus on maximising gas and electricity yield, driving cost efficiencies, maintaining strong relationships with landfill owners and other key stakeholders, and maintaining the highest standards of environmental, health and safety management. In addition, as gas and electricity output from the current LFG portfolio declines, we will seek opportunities to monetise spare engine and grid connection capacity.”
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