Antin Infrastructure Partners has agreed to acquire Veolia’s US district energy business for an enterprise value of USD USD 1.25bn, according to a 31 July press release.
Veolia took indicative bids in the auction for the business on 7 May, according to sister publication Sparkspread.
The business, a unit of Veolia Environment, generated USD 90m in EBITDA in 2018, implying a 13.9x multiple.
BofA Securities advised on the process code-named Project Phoenix. RBC, Messier Maris & Associės and Ph Villin Consell advised Antin as financial advisers while White & Case served as legal counsel.
The business comprises 13 district heating and cooling systems across 10 cities, including strategic positions in Boston, Cambridge, Philadelphia and Baltimore. The business projects USD 400m in revenues in 2019, according to the press release.
Following the completion of the deal, Antin will work with the company’s management to support numerous growth opportunities. These include optimization and efficiency projects along with growth projects including network densification, midscale project development in existing and new areas, energy services and acquisitions.
The portfolio is unencumbered by debt.
Veolia’s generation assets are as follows: a 100% interest in the 163MW Grays Ferry cogen plant in Philadelphia; the 232MW Kendall cogen plant, which serves Boston and Cambridge, Mass.; and a 100% interest in the 5MW Hickory Meadows LFGTE facility in Wisconsin.
Antin’s EUR 3.6bn Antin Infrastructure Partners III acquired French district heating firm IDEX Corp in a roughly EUR 720m deal last summer. The firm is now seeking to close its fourth fund at the end of the year after holding a first close of EUR 2.5bn.
Veolia amounts to Antin’s second deal in North America following its acquisition of FirstLight Fiber last summer.