EMEA: Buyer emerges for Green Frog

26 January 2018 - 12:00 am UTC

I Squared Capital has been selected as preferred bidder in the auction of Green Frog, the UK flexible power generation company, Inframation understands.

The seller, InfraRed Capital, helped build up Green Frog to make it the UK’s leading supplier of short-term operating reserve, which balances supply and demand in the UK’s power network.

The other shortlisted bidders, which include 3i Infrastructure, AMP Capital, and Arcus Infrastructure Partners are now expected to focus on a similar reserve power asset, private equity-owned UK Power Reserve.

Since 2011, InfraRed, advised by Rothschild on the sale, has invested hundreds of millions of pounds of equity in Green Frog, which now has some 500MW of standby and flexible power capacity as well as in-house engineering, construction and maintenance. 

RBS provided it with a GBP 60m project finance loan in 2011 to back construction of a portfolio of 14 standby power projects. 

Inframation previously reported the sale price as being GBP 400m for the company, which operates across 32 sites in the UK

It posted a GBP 16.8m turnover for the financial year ending March 2016, and GBP 12.5m operating profit.

Its generation assets are mainly diesel- and gas-powered, the company having won some 290 MW in the last capacity auction.

UK Power Reserve, owned by Inflexion and Equistone, owns 813MW of capacity, while a further 363MW is due online by October 2018. 120MW of the capacity under development is large-scale battery storage.

Equistone and Inflexion acquired UKPR in 2015 and committed to finance the development of 533 MW reserve capacity.
 

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Green Frog