EQT Active Core Infrastructure Fund (“EQT”) has announced its entry into exclusive negotiations for the acquisition of Ocea Group (“Ocea”) from ICG Infrastructure Equity I (ICG Infra). This strategic acquisition is poised to bolster EQT’s presence in the environmental services market, particularly in the smart water and heat submetering domain.
Ocea Group, renowned for its pivotal role in the deployment of intelligent submetering solutions, has been instrumental in generating substantial savings for consumers while concurrently benefiting the environment. The company boasts an impressive operation of over four million heat and water submeters.
With a robust portfolio of long-term, inflation-linked contracts extending beyond a decade, Ocea delivers an exhaustive suite of submetering services to a diverse clientele of more than 7,000 entities, encompassing both public and private sectors.
The French submetering market, where Ocea has established a strong foothold, is anticipated to experience a surge in growth, propelled by regulatory frameworks and a burgeoning consumer appetite for consumption management. This trend is expected to enhance penetration rates across water and heat segments and unlock new business avenues.
Since ICG Infra’s acquisition of a controlling interest in Ocea Group back in 2019, the company has witnessed a series of developmental initiatives aimed at reinforcing its position in the energy transition landscape. These efforts have been spearheaded by a seasoned management team under the leadership of CEO Emmanuel Croc.
EQT’s strategy for Ocea includes nurturing the company’s core submetering operations and exploring expansion into related sectors such as environmental services, data management, and intelligent housing solutions.
EQT’s support is anticipated to catalyze Ocea’s asset and client base expansion, drive innovation through capital expenditure in sustainable energy solutions, and foster substantial investments in digital customer services.
The completion of this transaction is contingent upon the fulfillment of standard regulatory prerequisites, including the consultation of Ocea’s works council. The deal is slated for closure in the second or third quarter of 2024.
Advisory services for EQT were provided by Rothschild & Co (financial), Linklaters LLP (legal), BCG (commercial and ESG), and KPMG (finance and tax). Conversely, ICG Infra’s advisory team comprised Ayache (legal), Bird&Bird (legal), and Eight Advisory (finance).
Fabian Gröne, Partner in the EQT Active Core Infrastructure Advisory Team, said: “Ocea would mark EQT Active Core Infrastructure’s third investment, which is focused on acquiring core businesses with strong downside protection and inflation-linked contracts backed by thematic market growth – while still providing significant value creation opportunities from EQT’s active ownership approach.”
Emmanuel Croc, Chief Executive Officer of Ocea, said: “We see the demand for submetering solutions steadily increasing amidst continued volatility in energy costs, increased customer awareness and desire to save coupled with a favorable regulatory landscape. By combining Ocea’s footprint and customer relationships with EQT’s experience in the energy sector, we plan to scale the platform further and grow in attractive adjacencies such as geothermal.”
EQT Private Equity acquires supply chain software leader, Avetta