KKR, a US-based private equity company, has agreed to buy British power generation company ContourGlobal in an all cash deal worth £1.75bn ($2.18bn).
ContourGlobal, a wholesale power generation company, has approximately 6.3GW in operation across 20 countries. It currently has a portfolio that includes 138 thermal and renewable power plants in Europe, North America, Latin America, and Africa.
The private equity firm brokered the deal through its newly formed company, Cretaceous Bidco.
Joseph C Brandt, president and CEO of ContourGlobal, said that “What began in a small office in New York with three people has grown into a global power generation company that operates 138 power plants in 20 different countries 17 years later.”
“Together, we have built a more than $6bn enterprise. I am proud to say that we have grown tremendously and have kept the promises we made to investors when the company was listed in November 2017.
KKR stated that ContourGlobal’s current business is a ‘compelling foundation for significant future organic or inorganic value-accretive development’. This is due to the changes occurring in the energy sector as a result decarbonisation targets.
Vincent Policard, KKR partner and co-head of European Infrastructure, stated that “ContourGlobal” is a highly diversified global platform for energy in an industry that is undergoing a significant transformation.
“We believe private ownership would allow ContourGlobal to invest at greater scale and with more flexibility in the business, including acceleration of investments in energy transition in order to achieve the net zero commitments.”
