Sembcorp Industries (Sembcorp) has agreed to acquire flexible distributed energy generator UK Power Reserve (UKPR) for £216m ($287m).
Image: UK Power Reserve operates a portfolio of flexible distributed energy generation projects across 32 locations in England and Wales. Photo: Courtesy of UK Power Reserve Ltd.
UKPR owns and operates a portfolio of flexible distributed energy generation projects across 32 locations in England and Wales. Total capacity of the projects in operation is 533MW, with a further 480MW in construction and under development.
Overall, its portfolio of more than 1GW capacity includes small-scale, fast-ramping power generation assets and rapid response batteries.
The acquisition is expected to give Sembcorp a firm foothold in flexible distributed energy. Besides, it is expected to help the company in rebalancing its energy portfolio towards developed markets.
Sembcorp group president and CEO Neil McGregor said: “Markets, customers and stakeholders are looking for 21st century energy solutions that are more sustainable, flexible and competitive. Our belief is that we can achieve this by transforming our business model to provide a full spectrum of energy solutions with the right mix of capabilities and technologies.
“The acquisition of UK’s largest flexible distributed energy generator is an important step in this direction. It will transform our UK business from a centralised utilities provider on Teesside, into an integrated energy business with operations across the country.”
To acquire UKPR, Sembcorp has reached an agreement to acquire 100% of its holding company, Repono Holdco 1 (Repono), from private equity investors Inflexion and Equistone and from members of UKPR management.
After a competitive process conducted by UKPR’s shareholders, Sembcorp was chosen as the buyer of the company.
Sembcorp UK utilities business head Nomi Ahmad said: “Sembcorp is delighted to have secured this exciting business, which deepens our presence in the UK considerably and gives us a significant presence in distributed generation. The acquisition gives us greater opportunities for further expansion, and sets us firmly on track to grow in the UK.”