Brookfield Infrastructure has agreed to sell its wholly-owned North American district energy business Enwave.
Enwave will be sold through two separate deals. IFM Investors and the Ontario Teachers’ Pension Plan Board will acquire 100% of Enwave’s Canadian business, while QIC and ULLICO will acquire 100% of the US business.
The deals are worth $4.1bn on an enterprise value basis. Net proceeds from the transactions are expected to be worth approximately $950m.
Brookfield Infrastructure CEO Sam Pollock said: “The sale of Enwave caps off a hugely successful investment for Brookfield Infrastructure, one in which we grew the business significantly through organic growth initiatives and follow-on acquisitions.
“These transactions begin what we anticipate being another strong year for Brookfield Infrastructure’s capital recycling program.”
Brookfield Infrastructure acquired Enwave in 2012. Under Brookfield’s ownership, Enwave’s network expanded with the acquisitions of district energy systems.
Enwave operates in 13 cities and has more than 800 customers under long-term contracts.
It delivers 3,792,000 pounds per hour of heating and 327,000t of contracted cooling capacity across its network.
Subject to customary closing conditions, the deals are expected to complete in mid-2021.
Scotiabank and TD Securities are acting as joint financial advisors for Brookfield Infrastructure, and Goodmans and Mayer Brown as legal advisors.