Brookfield Infrastructure Announces Sale of North American District Energy Business for $4.1 Billion
February 02 2021 - 7:30AM
Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) today announced
that it has signed definitive agreements to sell 100% of its North
American district energy business, Enwave. The business will be
divested through two separate transactions for total consideration
of $4.1 billion on an enterprise value basis. Ontario Teachers’
Pension Plan Board and IFM Investors have agreed to acquire 100% of
Enwave’s Canadian business. Concurrently, QIC and Ullico have
agreed to acquire 100% of Enwave’s U.S. business. Net proceeds to
BIP are expected to be approximately $950 million.
“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
follow-on acquisitions,” said Sam Pollock, Chief Executive Officer
of Brookfield Infrastructure. “These transactions begin what we
anticipate being another strong year for Brookfield
Infrastructure’s capital recycling program.”
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,
benefiting from the economic, social and environmental qualities of
clean and sustainable district energy. Under Brookfield’s
ownership, Enwave’s network was significantly expanded by acquiring
other high-quality district energy systems and driving a
substantial organic growth strategy. Over this time period, 135 new
customer buildings were added and EBITDA grew at a compounded
annual rate of over 20%. Today, the business operates in a
stabilized and highly contracted environment in 13 major cities,
serving over 800 customers under long-term contracts. The business
delivers 3,792,000 pounds per hour of heating and 327,000 tons of
contracted cooling capacity across its network.
This transaction further demonstrates continued
strong execution on our capital recycling plans, with the proceeds
from the sale expected to accretively fund a large component of our
annual growth investment target of $2 billion. Each
transaction is subject to customary closing conditions and closing
is expected to occur in mid-2021.
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
leading global infrastructure company that owns and operates
high-quality, long-life assets in the utilities, transport,
midstream and data sectors across North and South America, Asia
Pacific and Europe. We are focused on assets that generate stable
cash flows and require minimal maintenance capital expenditures.
Investors can access its portfolio either through Brookfield
Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a
Bermuda-based limited partnership, or Brookfield Infrastructure
Corporation (NYSE, TSX: BIPC), a Canadian corporation. Further
information is available at www.brookfield.com/infrastructure.
Brookfield Infrastructure is the flagship listed
infrastructure company of Brookfield Asset Management, a global
alternative asset manager with approximately $600 billion of assets
under management. For more information, go to
www.brookfield.com.
For more information, please contact:
Media:Claire HollandSenior Vice President,
CommunicationsTel: (416) 369-8236 Email:
claire.holland@brookfield.com |
Investors:Rene LubianskiManaging Director,
Strategic Initiatives Tel: (416) 956-5196Email:
rene.lubianski@brookfield.com |
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