31 October 2016
Terra Firma announced today that the Infinis Group, one of the UK’s leading independent renewable energy generators, has entered into an agreement to sell Infinis plc and its subsidiaries, which together own the landfill gas assets of the Infinis Group, to 3i Infrastructure plc. The sale is expected to close by the end of November 2016.
Infinis plc’s landfill gas portfolio is the largest in the UK, with more than 300MW of installed capacity across 121 sites. The Infinis Group will continue to own and operate its portfolio of over 400MW of operational and in-construction onshore wind assets.
Guy Hands, Chairman and Chief Investment Officer of Terra Firma, said: “Terra Firma transformed the Infinis Group from a non-core and largely outsourced unit within a waste management company into one of the UK’s leading independent renewable power generation companies. Our focus on operational excellence means we have built not only the largest landfill gas business in the UK, but also an independent power platform of very high quality. Given the current appetite for stable, cash-yielding infrastructure assets, we saw a good opportunity to generate value for our investors through the sale of the landfill gas business.”
The Infinis Group began as the non-core energy division of Waste Recycling Group (‘WRG’), one of the leading waste management companies in the UK which Terra Firma acquired in 2003. Terra Firma identified it as a profitable growth business underpinned at the time of acquisition by a growing focus on alternative energy sources and a strong regulatory regime which encouraged investment. The division was spun out from WRG as Infinis in 2006.
The Infinis Group has invested heavily in the roll-out of its gas collection systems and engines, taking the landfill gas generating capacity from 57MW in 2003 to over 300MW in October 2016. The business also diversified into onshore wind and overhauled its site operations with the establishment of leading in-house operational and maintenance capabilities.
About Terra Firma
Founded by Guy Hands in 1994, Terra Firma is one of Europe’s leading private equity firms. Terra Firma specialises in the acquisition and fundamental transformation of asset-backed businesses, focusing on investments in transformational private equity, operational real estate and infrastructure. Since 1994, Terra Firma has invested over €16 billion of equity and completed transactions with an aggregate enterprise value of €48 billion.
About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company is a long-term investor in infrastructure businesses and assets. The Company’s market focus is on economic infrastructure and greenfield projects in developed economies, principally in Europe, investing in operating businesses and projects which generate long-term yield and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as Investment Adviser to 3i Infrastructure plc.