Partners Group has acquired a majority stake in Fermaca, a gas infrastructure operator in Mexico, in an about $750 million deal. Partners Group made the investment alongside company management using a combination of mezzanine debt and equity.
Partners Group, the global private markets investment manager, has acquired a majority stake in Fermaca on behalf of its clients from Ospraie Management in a transaction of approximately USD 750 million. The investment was made alongside management and funded through a combination of mezzanine debt and equity. Fermaca, a leading operator of gas infrastructure in Mexico, builds, owns and operates pipelines and other related energy assets in the country. The company’s gas transportation customers include Mexico’s largest natural energy companies. Its current pipelines are capable of shipping about 1.2bn mmbtu/day, which constitutes approximately 20% of Mexico’s natural gas needs. The bulk of Fermaca’s capacity is contracted under long term agreements, providing the business with stable and predictable cash flows.
Benefiting from the momentum generated by the recently approved Mexican Energy Reform, Partners Group and management are planning to invest and further develop the company in the coming months. Several initiatives are currently underway to grow the firms’ operations in the US and in Mexico, improve its efficiency and prepare for the next growth phase of its expansion plan. New pipeline tenders are expected in the short term, to serve the industrial and the power sectors. Fermaca’s know-how and track record uniquely positions it to benefit from the strong fundamentals underpinning the growth of the Mexican gas sector.
Fernando and Manuel Calvillo Alvarez, founders of Fermaca, stated: “Mexico will need capital investment of over USD 10 billion for natural gas infrastructure over the next 5 years to meet its targeted growth plan. With the abundance of projects planned, and the very favorable political and regulatory framework provided by the Reform, we find the current environment extremely attractive to continue building, owning and operating new gas infrastructure assets. We are excited to be partnering with Partners Group in this management buyout, a firm that shares our ambition and vision for our continued, sustainable growth and success.”
Jean Perarnaud, Managing Director in the Private Infrastructure team at Partners Group, adds: “Our investment in Fermaca is an exciting addition to our portfolio as a core investment in energy infrastructure. Mexico’s growing economy will be supported by increasing amounts of natural gas and Fermaca provides an opportunity to connect the abundant shale gas supply in the United States with the growing natural gas demand in Mexico. We are extremely impressed with the Fermaca management team and look forward to building a leading energy player in the region.”
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 30 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Singapore, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 700 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of CHF 6 billion and a major ownership by its partners and employees.