Altium has advised AIM-listed independent power generator Alkane Energy on its GBP80.7m sale to infrastructure investment firm Balfour Beatty Infrastructure Partners (BBIP).
This is the third time that Altium has advised Alkane in the last three years, having led the company on its acquisition of power response assets from Welsh Power in 2014, as well as its acquisition of Maltby Colliery Limited from Hargreaves Services plc in 2013.
Based in Edwinstowe, Nottinghamshire, Alkane is a fast growing, independent UK power generator, operating mid-sized gas-to-power electricity plants. The business, which last year achieved turnover of GBP16.0m and adjusted EBITDA of GBP7.6m, exploits coalmine methane gas reserves by generating electricity and selling this via the local electricity distribution network.
Alkane Energy can also provide fast response energy into the national grid’s Short Term Operative Reserve programme. This is designed for use at peak times of electrical demand, typically 4-7pm and during winter months.
BBIP, which has offices in London, New York and Munich, is a mid-market focused infrastructure investment firm, providing investment advisory services to institutional investors in Europe and North America. With a fund size of circa USD618 million, its key sectors of focus are the energy, utilities and transportation industries.
The offer from BBIP values the share capital of Alkane at GBP61.4m, representing a 44 per cent premium to the share price immediately preceding announcement of the offer, plus net debt of GBP19.3 million. The deal will see BBIP continue to develop, execute and if possible accelerate management’s existing short term and longer term strategies.
The deal was led by Altium’s Manchester team, including managing director, Adrian Reed, assistant director, Adam Sivner and associate Tom Battersby. This transaction underlines the firm’s expertise in public-to-private deals, having already advised on the GBP47.1m takeover of Inspired Capital, the GBP304m buyout of Prezzo by TPG Capital and the GBP122.6m acquisition of Waterlogic by Castik Capital this year. In addition Altium continues to be a leading advisor in the energy sector following its advice to CBPE Capital on its acquisition of Anesco, the sale of Monsal to GE and the sale of Stroma to Lloyds Development Capital.
Adrian Reed (pictured), managing director at Altium, says: “We pride ourselves on developing long-standing relationships with our clients, demonstrated by this being the third transaction we have advised Alkane on in the last three years. At a time when the UK capacity margin is expected to be at its lowest levels this winter, Alkane has become an ever important mechanism in balancing demand and supply. We believe Alkane will be well supported by its new owners BBIP and wish them well going forward.”