THE third largest independent gas transportation network in the UK – Indigo Pipelines – has been sold by Scottish Equity Partners (SEP) to Arjun Infrastructure Partners (AIP), in a deal that should be completed by the end of February.
Indigo, which owns around 180,000 gas connections, was established in 1992 as SSE Pipelines.
The company was acquired in September 2014 by the Environmental Capital Fund (ECF) – an infrastructure fund targeted at UK-based energy infrastructure projects – which is under SEP’s management.
Under SEP’s ownership Indigo has continued to rapidly grow its network of connections throughout the UK.
The terms of this latest sale have not been disclosed, but SEP said it was “ahead of the original plan” and would deliver a significant return for investors.
Indigo had a turnover of just under £17 million last year and made £4.37m in pre-tax profits
SEP partner, Gary Le Sueur, said: “Over the course of the last few years, we have developed Indigo into a high quality and successful business.
“It is now one of the fastest growing companies in its sector with an impressive track record.
“The proposed transaction will provide a significant return to our investors.
“We believe that AIP will be an excellent owner of the business and that Indigo will continue to perform strongly in the future.”
AIP has extensive operational and financial experience in regulated utilities, energy and renewables and transportation sectors. It also manages more than £1.2 billion of funds for institutional investors.
The company was established in 2015 and to date has completed nine investments. Its team has experience working with the likes of JP Morgan AM and Scotia Gas.
Surinder Toor, one of AIP’s founding partners, welcomed the acquisition.
“Indigo is a modern, high-quality, gas pipelines network in the UK with long-term, regulated cash flows and significant growth potential.
“It represents an exciting investment opportunity for our investors.”
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