Brookfield Infrastructure, leading group of investors and owners of energy infrastructure assets, announced the selling of their energy district business, Enwave for a total amount of $4,1 billion.
The selling was closed in early February for the entire Enwave business in North America. Firstly, the business will be divested through two different transactions for a total of $4,1 billion on an enterprise value basis.
Secondly, the buyers were Ontario’s Teachers Pension Plan Board and IFM Investors, for a 100% of Enwave’s Canadian wing; while, QIC and Ullico agreed to acquire a 100% of Enwave’s U.S. business. Thirdly, net proceeds to BIP will be around $950 million.
In addition, Brookfield’s CEO, Sam Pollock, said. “The sale of Enwave caps off a hugely successful investment for Brookfield Infrastructure; one in which we grew the business significantly through organic growth initiatives and also follow-on acquisitions.”
He also said: “These transactions begin what we anticipate being another strong year for Brookfield Infrastructure’s capital recycling program.”
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Enwave has grown 20% annually
Moreover, John Peri, Chairman and CEO, Enwave Energy Corporation declared. “The transition of ownership announcement from Brookfield is a testament to the tremendous business we have created together at Enwave.”
“Firstly, Brookfield has been a powerful partner in our growth, and we know they are committed to supporting a smooth transition. Secondly, this is the most exciting time to be in district energy and we have attracted eager; also, well-capitalized investors who want to build on our years of success.”
On the other hand, the energy district was first acquired by Brookfield back in 2012. Since then, it has become one of North America’s largest energy districts. It also has developed clean and sustainable energy solutions.
Finally, over the last years the company grew at a compounded annual rate of over 20%. “Today, the business operates in a stabilized and highly contracted environment in 13 major cities; also serving over 800 customers under long-term contracts. The business delivers 3,792,000 pounds per hour of heating; as well as 327,000 tons of contracted cooling capacity across its network.”
