KKR has acquired Zenith Energy, Australia’s leading independent power producer from a consortium including Pacific Equity Partners, OPSEU Pension Trust and Foresight Group.
Zenith Energy’s management will retain a minority stake in the A$1.7bn deal (€955m).
Zenith, founded in 2006, specialises in the delivery of sustainable and reliable hybrid power solutions for remote, off-grid resource sector clients and urban microgrids for commercial, industrial and residential precincts.
Andrew Jennings, managing director and head of Australia & New Zealand infrastructure, KKR, said: “Zenith’s position at the forefront of the energy transition, coupled with its long-term relationships with strategic, high-quality counterparties, make it an ideal investment for our Asia Pacific infrastructure platform.”
KKR is making this investment from its Asia Pacific Infrastructure Investors II fund.
Zenith’s CEO and managing director, Hamish Moffat, said: “The investment by KKR will accelerate our growth and ability to service large scale projects with a broad capital base.
“There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver via large-scale, high penetration, hybrid power projects.
The sale to KKR follows Zenith’s completion of a A$1.9bn refinancing and upsizing of its existing bank debt facilities.
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