AMP Capital and Infracapital to acquire pan-Nordic energy infrastructure company

AMP Capital and Infracapital have reached an agreement to acquire a 100 per cent equity stake in Adven Group Oy, a provider of sustainable and business critical energy infrastructure and services in Finland, Sweden and Estonia..

The consortium has reached an agreement to buy the stake from investment manager EQT Infrastructure and company management.

Adven provides low carbon, co-located energy infrastructure to industrial users as well as district heat solutions in Finland, Sweden and Estonia; industrial energy and regulated gas distribution in Estonia; and a small gas network in Finland. Adven is also a leading player in the provision of geothermal energy in Sweden. The company, which develops its energy infrastructure through a finance, build, own and operate model, currently delivers energy to more than 220 sites corresponding to an installed capacity of approximately 1500 MW.

The new owners see significant growth potential during the next five to seven years, with opportunities in the short term to expand the energy services and geothermal heat pump business in Finland, and medium-term plans to move into the Swedish industrial energy market. The company also benefits from a strong and growing interest in sustainability within its markets and is geared to capture structural market growth.

AMP Capital Global Head of Infrastructure Equity Boe Pahari said: “I am thrilled to partner with Infracapital to secure Adven for our investors. The asset is a great fit for AMP Capital’s global infrastructure platform due to its attractive risk-return profile, highly predictable and protected cash flows, and growth prospects in a sector where there are significant barriers to entry and where the competitive landscape is fragmented. Energy is also a key target area for AMP Capital due to its significant growth opportunities.”

Ed Clarke, Co-Founder of Infracapital, said: “Adven is a great addition to Infracapital Partners II, providing good cash flows while also offering a range of growth opportunities which we intend to explore, leveraging our own expertise in these technologies and geographies. We look forward to working with AMP Capital and with the management team to build upon the existing, substantial base of energy infrastructure.”

Päivi Arminen, Director at Investment Advisor EQT Partners Oy, commented: “Since the EQT Infrastructure acquisition in 2012, Adven has undergone an extraordinary transformation, illustrating the efficiency of EQT´s governance structure and industrial approach. With the strong demand for sustainable outsourced energy infrastructure, driven by environmental and cost efficiency targets of Adven’s customers, we are convinced that AMP Capital and Infracapital will carry Adven into the next phase of growth.”

AMP Capital and Infracapital were advised by DC Advisory (Financial and Debt Advisor), Nordea (Financial Advisor), Clifford Chance (legal), Dittmar and Indrenius (Finnish law), PricewaterhouseCoopers (Financial and Tax), Gaia (Contract and Regulatory), Atkins (Technical and Environmental) and Marsh (Insurance).

EQT Infrastructure was advised by Danske Bank (M&A) and Hannes Snellman (legal).