The energy company Adven will be acquired by AMP Capital and Infracapital
EQT Infrastructure has agreed to sell Adven Group to a consortium comprising of the investment funds AMP Capital and Infracapital. Adven is an energy company operating in Finland, Sweden and Estonia. The transaction is expected to close in January.
Päivi Arminen, Director at Investment Advisor EQT Partners Oy, comments: "It has been an exciting journey since 2012, when EQT acquired Adven. There is a strong demand for sustainable outsourced energy services among Adven's customers. The continuous increase in demand is driven by tightening environmental requirements and the growing importance of energy efficiency. I believe that Adven will continue to prosper", says Arminen.
Matti Viljo, CEO of Adven, adds: "Adven has changed its strategic direction and now has a significant growth potential for the future. In addition to having established several new areas for further growth, the organization has been greatly strengthened, resulting in stronger customer focus and an even better offering of significant savings and efficiency benefits for our customers. We are excited to continue executing our strategy together with AMP Capital and Infracapital. Our vision is to become the most desired energy partner by offering our customers the possibility to focus on their core business and feel safe with letting Adven provide them energy as a service."
According to Boe Pahari, AMP Capital Global Head of Infrastructure Equity, the energy sector is a key target area for AMP Capital due to its significant growth opportunities. "Adven is a great fit for AMP Capital's global infrastructure platform due to its attractive risk-return profile and growth prospects", Pahari adds.
Ed Clarke, co-founder of Infracapital, says: "Adven is a great addition to Infracapital. We look forward to working with AMP and with the management team to build upon the existing, substantial base of energy infrastructure."
EQT Infrastructure has been advised by Danske Bank and Hannes Snellman.
During the past three years, Adven has invested in environmentally friendly energy solutions with a total capital expenditure of over EUR 120 million. Adven has expanded into Sweden and the service offering has been diversified, thus creating additional growth avenues. These efforts have resulted, among other things, in close to 50% growth in the number of employees and over 35% decrease in Adven's own CO2 emission.
Adven is the leading provider of energy services in Finland, Sweden and Estonia with over 30 years of experience. In 2014, Adven generated an EBITDA of EUR 30 million and currently employs 215 people.
EQT is a leading global private equity group with approximately EUR 29 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140 000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership. EQT Infrastructure is a EUR 1.2 billion fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America. Investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and infrastructure-related services. For further information, please visit www.eqt.se.
Adven is the leading industrial and commercial outsourced energy infrastructure and services provider in Finland, Sweden and Estonia. Adven holds long-term contracts to build, own and operate plants producing process steam, heat and cold at its clients' production facilities. In addition to the tailored energy solutions, Adven provides district heating, space heating and cooling through geothermal solutions and has a gas distribution/resale business. Adven delivers energy at around 140 industrial sites, operates around 50 district heating sites and networks, and 15 geothermal sites corresponding to an installed capacity of approximately 1,500MW. For further information, please visit www.adven.com.
About AMP Capital
AMP Capital is a specialist investment manager with more than US$ 114 billion in funds under management and more than 250 investment professionals. AMP Capital is one of the most experienced global infrastructure managers with more than 25 years' experience and having made over 120 infrastructure equity and debt investments globally. AMP Capital was one of the first investors globally to invest in infrastructure when it participated in the financing of the Sydney Harbour Tunnel in 1988. AMP Capital today manages investments in Asia, Europe, North America, Australia and New Zealand. AMP Capital is a subsidiary of AMP Limited. For further information, please visit www.ampcapital.com.
Infracapital is a leading European infrastructure investor, managed by M&G Investment Management. Infracapital has raised and managed over £2.4 billion, and has a team of 25 investment professionals. Target sectors include utilities, essential transportation, renewables and communications infrastructure. For further information, please visit www.infracapital.co.uk.