Energia Sold to Ardian in Multibillion-Euro Deal
- Energia Group's owner, US investment firm I Squared, has agreed to sell the Irish power company to French private equity firm Ardian.
- I Squared initially put the group on the market earlier this year with a reported estimated enterprise value of €2.75 billion, including net debt.
- The transaction is expected to be completed in the first quarter of next year, pending customary regulatory approvals.
Ardian to Acquire Energia Group from I Squared Capital
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The Deal: A Shift in ownership
Energia Group’s owner, US investment firm I Squared, has agreed to sell the Irish power company to French private equity firm Ardian. The transaction marks a significant change in ownership for one of Ireland’s leading energy providers.
I Squared initially put the group on the market earlier this year with a reported estimated enterprise value of €2.75 billion, including net debt. While parties involved have declined to disclose the final agreed-upon value, the deal underscores the substantial value of Energia within the Irish energy landscape.
The transaction is expected to be completed in the first quarter of next year, pending customary regulatory approvals. This timeline allows for a thorough review by relevant authorities to ensure compliance and fair competition.
Energia Group: A Key Player in the Irish Energy Market
Energia operates across the entire energy value chain in the republic of Ireland and Northern Ireland,serving almost 900,000 homes and businesses. It is indeed a major contributor to the region’s energy needs and a leader in renewable energy sources.
Specifically, Energia is one of the longest-established providers of renewable electricity in Ireland, supplying approximately 17 per cent of the island of Ireland’s total electricity requirements and 20 per cent of its total wind power. This commitment to renewables positions Energia as a crucial component of Ireland’s transition to a sustainable energy future.
Historical Ownership and Previous Sale Attempts
I Squared acquired Energia – then known as Viridian – in 2016 from Bahrain’s Arcapita Bank for €1 billion. Arcapita had owned the business for almost a decade. Prior to this acquisition, I Squared made two unsuccessful attempts to sell the company, in 2018 and 2020, indicating a strategic shift in their investment approach.
Following the 2016 acquisition, I Squared sold a minority stake in Energia to an undisclosed investor the following year and established a holding company for the business in the Cayman islands. Ardian is acquiring 100 per cent of Energia, consolidating ownership under the French firm.
Competing Bids and the Role of Other Investors
Ardian was an early participant in the bidding process, though initially not considered a front-runner. Though, they ultimately secured the deal, surpassing other prominent contenders.
New York-based private equity group KKR and a joint bidding team comprising the Canada Pension Plan Investment Board (CPPIB) and its UK power supply business,Octopus Energy,were said to have been preparing strong final offers before a deadline last Monday. Their involvement highlights the significant interest in Energia from major international investors.
I Squared Capital: A Profile
I Squared, founded 13 years ago by former executives at Morgan Stanley’s infrastructure arm, focuses on investments in infrastructure and energy assets globally. The sale of Energia represents a successful exit for the firm, demonstrating their ability to identify and grow valuable assets.