Brookfield Infrastructure Sells North American District Energy Business for $4.1 Billion
Posted on 02/03/2021
Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) signed definitive agreements to sell 100% of its North American district energy business, Enwave Energy Corporation. The business will be divested through two separate transactions for total consideration of US$ 4.1 billion on an enterprise value basis.
DEAL 1
Ontario Teachers’ Pension Plan Board and IFM Investors have agreed to acquire 100% of Enwave’s Canadian business. The transaction value for the Canadian business is C$ 2.8 billion. IFM Investors and Ontario Teachers’ will retain the Enwave brand as part of this transaction and each will own 50% of the company.
DEAL 2
Concurrently, Brisbane-based QIC and Ullico Inc. have agreed to acquire 100% of Enwave’s U.S. business.
Net proceeds to BIP are expected to be approximately US$ 950 million.
Enwave was first acquired by Brookfield Infrastructure in 2012 and has since experienced tremendous growth to become the largest district energy system in North America. Over this time period, 135 new customer buildings were added and EBITDA grew at a compounded annual rate of over 20%. The business delivers 3,792,000 pounds per hour of heating and 327,000 tons of contracted cooling capacity across its network.
Advisors
Scotiabank and TD Securities are acting as joint financial advisors to Brookfield Infrastructure and Goodmans LLP and Mayer Brown LLP are acting as legal advisors.
Brookfield Infrastructure is a global infrastructure company.
Keywords: Brookfield Asset Management. Ontario Teachers Pension Plan.