KKR, investing through its global infrastructure investors funds, is buying a 20% stake in Sempra Infrastructure Partners for $3.37bn (€2.85bn).
North American energy infrastructure company Sempra Energy said it has agreed to sell the non-controlling interest in Sempra Infrastructure Partners in a deal that values the new business platform at $25.2bn, including expected asset-related debt at closing of $8.37bn.
Sempra Energy said the transaction is part of a number of deals originally announced in December last year that are intended to simplify Sempra Energy’s non-utility infrastructure investments under one self-funding platform, combining Sempra LNG and IEnova.
Jeffrey W Martin, chairman and CEO of Sempra Energy, said: “Over the next decade, we expect the energy markets in North America to continue to grow and become increasingly integrated. Combining our resources with KKR improves our ability to capture new investment opportunities in cleaner forms of energy and the critical infrastructure that stores and transports it.
“This transaction also sends a clear signal about the value and expected growth of our infrastructure portfolio.”
Raj Agrawal, KKR partner and global head of infrastructure, said: “Investing in critical new energy infrastructure creates jobs, delivers reliable energy with fewer emissions and supports North America’s economic recovery. That is why we are excited to partner with Sempra Energy.
“This infrastructure platform provides a strong foundation to expand cleaner energy resources across the continent. Backed by strong, contractually-supported, long-term cash flows, our investment is also consistent with KKR Infrastructure’s strategy to seek stable and predictable returns for our investors.”
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