Brookfield Infrastructure sells North American District Energy Business for $4.1 Billion

BROOKFIELD: Brookfield Infrastructure has completed the sale of 100% of its North American district energy business, Enwave.

The business has been divested through two separate transactions for total consideration of $4.1 billion on an enterprise value basis.

Enwave’s Canadian business was acquired by Ontario Teachers’ Pension Plan Board and IFM Investors on June 7, 2021, and Enwave’s U.S. business was acquired by QIC and Ullico on July 16, 2021. Net proceeds to BIP are approximately $1 billion. “We have earned an IRR of over 30% on our investment and a multiple of invested capital of over six times,” a news release said.

Brookfield Infrastructure made its first district energy investment in 2012 and subsequently developed the business into the largest district energy system in North America. As a result of the company’s asset management initiatives, the business generates stable and predictable cash flows, has a unique and highly attractive investment profile, and is a global leader in sustainability.

With the completion of this transaction, Brookfield Infrastructure’s corporate liquidity totals approximately $4 billion, which will be used towards growth initiatives.

Scotiabank and TD Securities acted as joint financial advisors to Brookfield Infrastructure and Goodmans LLP and Mayer Brown LLP acted as legal advisors.

Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across North and South America, Asia Pacific and Europe.

Brookfield Infrastructure Partners is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager with over US$600 billion of assets under management.

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