Arjun Infrastructure Partners (AIP) has acquired a UK public gas transporter from Scottish Equity Partners (SEP).
SEP - which manages funds on behalf of institutional investors, pension funds and corporates - said it has agreed to sell Indigo Pipelines to AIP for an undisclosed sum.
The transaction is expected to complete by the end of February next year.
Indigo is the third largest independent gas transportation network in the UK owning around 180,000 gas connections.
The company was established in 1992 by Scottish energy firm SSE as SSE Pipelines.
In September 2014, Indigo, which had over 130,000 gas connections, was acquired by the Environmental Capital Fund (ECF), an infrastructure fund managed by SEP for around £52.7m (€60.3m).
Gary Le Sueur, a partner at SEP 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.”
Surinder Toor, a founding partner of AIP said: “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.”
AIP was founded in 2015 by the former European management team of the Global Infrastructure Investments Fund at JP Morgan Asset Management, led by Surinder Toor.
AIP has been facilitating direct investment by pension and insurance funds since 2015, with eight transactions since May 2016.
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