EQT Infrastructure Limited (“EQT Infrastructure”) has reached a definitive agreement to sell Adven Group (“Adven” or “the Company”) to a consortium comprising of AMP Capital Investors (“AMP Capital”) and Infracapital Partners II (“Infracapital”). The transaction is expected to close in January 2016.
Adven was acquired by EQT Infrastructure in January 2012. The Company is the leading provider of sustainable and business critical energy infrastructure and services in Finland, Sweden and Estonia. Adven owns and operates a diversified, high-quality asset base at the sites of its industrial, municipal, and real estate customers. In 2014, Adven generated an EBITDA of EUR 30 million and currently employs 215 people. The Company benefits from the strong and growing sustainability trends in society and is geared to capture the structural market growth.
Adven has over 30 years of experience in reliable energy delivery, a guarantee for technical knowledge and competence. During EQT Infrastructure’s ownership, in particular the customer focus, commercial mindset and performance oriented culture have been further developed. Both the management team and the governance of the Company have been strengthened, and core business processes have been improved.
Since 2012, EQT Infrastructure has supported the Company in significant growth, both organically through continued investments in environmentally friendly energy infrastructure and through selected add-ons, with a total capital expenditure of over EUR 120 million. Adven has expanded into Sweden and widened its offering to complementary services, 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 CO2emission. Consequently, customers have also reduced their carbon footprints.
Päivi Arminen, Director at Investment Advisor EQT Partners Oy, comments: “It has been an exciting journey. Since 2012, Adven has undergone an extraordinary transformation illustrating the efficiency of EQT’s governance model and industrial approach. With the strong demand for sustainable outsourced energy infrastructure, driven by environmental and cost efficiency targets of Adven’s customers, we believe that Adven will continue to prosper. EQT Infrastructure is convinced that AMP Capital and Infracapital will carry Adven into the next phase of growth.”
Matti Viljo, CEO of Adven, adds: “During EQT Infrastructure’s ownership, Adven has changed its strategic direction and now has a significant 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, more commercial mindset and performance oriented culture. We are excited to keep developing the Company together with AMP Capital and Infracapital and tocontinue executing on our strategy. 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 with energy as a service.”
Boe Pahari, AMP Capital Global Head of Infrastructure Equity, 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 and growth prospects. 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 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.
For additional information, please contact:
Päivi Arminen, Director at EQT Partners, Investment Advisor to EQT Infrastructure, +358 9 6962 4742
Kerstin Danasten, EQT Press contact, +46 8 506 55 334
Matti Viljo, CEO Adven, +358 10 344 5494
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, owns and 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 USD 114 billion in funds under management as at 30 June 2015 and more that 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 unlisted and listed infrastructure investments in Asia, Europe, North America, Australia and New Zealand. AMP Capital is a subsidiary of AMP Limited. Established in 1849, AMP has more than 160 years of experience providing financial services, and is one of Australia's largest retail and corporate pension providers.
For further information, please visit www.ampcapital.com
Infracapital is a leading European infrastructure investor, managed by M&G Investment Management, the European investment management arm of Prudential plc. Infracapital has raised and managed over GBP2.4 billion across four European infrastructure funds to date, and a team of 25 investment professionals with investment, management and operational expertise. Infracapital’s approach to investment offers long-term value through the acquisition and active management of a diversified portfolio of core European infrastructure assets. Target sectors include utilities, essential transportation, renewables and communications infrastructure.
For further information, please visit www.infracapital.co.uk
EQT Infrastructure is part of the leading private equity group EQT (being existing EQT funds or any successor funds advised directly or indirectly by EQT Partners or its subsidiaries, collectively “EQT”).