Actis has sold Saavi Energía, an independent power generator in Mexico, to Global Infrastructure Partners (GIP) for an undisclosed sum.
Saavi is the fourth largest independent power producer and the largest privately held stand-alone power generator and has a geographically diverse 2.2 net GW portfolio of 6 gas turbines, 3 compression stations and 65km of associated natural gas pipelines.
Saavi primarily serves the Mexican power market as well as providing reserve capacity for specified markets in California.
GIP’s acquisition of Saavi follows its investment in the company’s $325m (€274m) secured term loan in 2020, which will be repaid as part of this transaction and marks GIP’s first direct equity investment in Mexico.
Adebayo Ogunlesi, chairman and managing partner of GIP, said: “Saavi has an exceptional record of providing reliable and efficient energy to leading industrial companies in Mexico.
“We look forward to working with the management team that has helped build this highly successful business to pursue growth opportunities in both traditional and renewable energy and further broaden its commercial footprint.”
Jaime Tupper, CEO, Saavi Energía, said: “Partnering with a global leader in infrastructure investing is an exciting opportunity to deliver on Saavi Energía’s strategic vision for growth to help meet Mexico’s energy needs.
“During the last three years, we have transformed the Company into an independent, Mexican leader in the energy space. Today, Saavi is a high performing company with a deep commitment to safety, sustainability and we are excited for what the future holds.”
Michael Harrington, partner, energy at Actis, said: “Our investment in Saavi is a great example of our replicable strategy to build, acquire and grow independent power producers that provide affordable, reliable and clean energy to the communities in which we invest.
“We remain committed to Mexico, where we see a healthy pipeline of investment opportunities to replicate our value-creation thesis.”
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