Infrastructure investment manager Ancala Partners is selling hydropower business Green Highland Renewables (GHR) to industrial group GFG Alliance for an undisclosed sum.
SIMEC, the energy arm of GFG, will acquire GHR in an unconditional deal, which is expected to complete in February next year.
Ancala acquired GHR in April 2015 and transformed it from a developer into an independent owner and operator of hydropower plants.
GHR has 18 operating projects with a total capacity of over 23MW and another four under development with a total capacity of 8MW.
Spence Clunie, managing partner at Ancala Partners, said: “Our strategy of transforming GHR into one of the leading independent owners and operators of hydro plants in the UK has been successful. We thank the GHR team for their contribution and wish them continued success.
“Ancala remains committed to pursuing opportunities in the UK and European mid-market infrastructure sector which provide inflation-linked, stable cash flows for our investors.”
Ian Cartwright, managing director at GHR, said: “We have enjoyed working with Ancala Partners over the past three years. Ancala saw the opportunity to grow GHR through targeted investment and operational improvement.
”The access to capital and operating expertise they have provided have allowed us to transform GHR into the UK’s leading independent owner and operator of hydropower plants.”