Macquarie successfully divests stake in leading UK multi utility network provider
London, 24 Oct 2018
Macquarie Principal Finance (Macquarie) has today completed the divestment of its majority stake in Energetics, one of the UK’s largest independent network owners, to the infrastructure equity investment arm of M&G Prudential, Infracapital.
Energetics works with the UK's largest housebuilders, construction firms and independent consulting companies to design, build, own and operate ‘last mile’ gas and electricity connections to new residential and commercial developments across the UK. As at 31 March 2018, the company had a portfolio of 225k domestic equivalent installed connections, as well as a significant secured orderbook of future connections which will be deployed in the coming years.
The business is based in Glasgow, Scotland with operations across the UK and Macquarie has been a shareholder since 2013. Under Macquarie’s ownership the business has increased its workforce by 75 per cent and expanded into new geographic regions in the Midlands and in the South of the UK. Total installed and secured connections increased threefold under Macquarie’s ownership, demonstrating the strength of the management team and Macquarie’s continued investment in the business.
Energetics was one of Macquarie Principal Finance’s largest controlled equity investments. Under its ownership, Macquarie committed over £145 million of capital to Energetics to fund the construction of vital infrastructure which has supported the development of over 65,000 new homes across the UK.
Hamish Jones, Senior Managing Director in Macquarie Principal Finance said: “Energetics has been a very successful investment for Macquarie. We are pleased to have overseen its transformation into a UK wide business that has increased competition in the last mile connections market. Having successfully reached financial close today, we are proud to have owned and invested in the growth of the business and wish the team continued success in the future.”
Mike Pearce, Chief Executive Officer of Energetics said: “We would like to thank Macquarie for the support and financial backing they have provided to the Company over the last five years. They have been instrumental to Energetics fulfilling its potential. I’d also like to thank Energetics’ employees, customers and suppliers for their continued support as we embark on the next phase of our journey to become the leading connections business in the UK.”
Mathieu Lief, Transaction Director in InfraCapital, said: “We are delighted with Infracapital Fund III’s latest investment. Energetics represents a rare opportunity to invest in a sizeable essential multi-utility business in the UK. Having developed proven design and build capabilities, the business is well placed to capitalise on the sizeable opportunity available within a growing UK housing market. We look forward to working with the management team and staff to help them realise their ambitions for the business.”
Macquarie Capital (Europe) Limited acted as financial advisor to Macquarie Principal Finance on the transaction.
The terms of the transaction are undisclosed.
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About Macquarie Group
Macquarie Group Limited (Macquarie) is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 14,469 people in over 25 countries. At 31 March 2018, Macquarie had assets under management of £309.9 billion. For further information, visit www.macquarie.com.
Part of Macquarie’s Corporate and Asset Finance business, Macquarie Principal Finance provides financing and investment capital on a flexible and bespoke basis.
Recognising that every client is different, Macquarie Principal Finance provides solutions across all financial instruments and across the capital structure. With offices in New York, Chicago, San Francisco, London, Singapore and Sydney, Macquarie Principal Finance has more than 100 experienced financing and investing professionals globally. For more information visit www.macquarie.com/principalfinance.