U.S. infrastructure investment firm Argo Infrastructure Partners has agreed to acquire the transmission system of Cross-Sound Cable Co LLC. The deal, the financial value of which was not disclosed, is expected to close later this year. Cross-Sound’s transmission system provides interconnection between the New England and Long Island power grids via a 39 kilometre submarine cable spanning Long Island Sound. It is being sold by Brookfield Infrastructure Partners, an affiliate of Canadian asset manager Brookfield Asset Management.
Argo Infrastructure Partners Announces Agreement to Acquire CrossSound Cable Company
April 17, 2015 – Argo Infrastructure Partners (“Argo”) today announced that its flagship infrastructure strategy AIA Energy North America LLC (“AIA”) has entered into a definitive agreement to acquire 100% of the CrossSound Cable (“CSC”) transmission system. The transaction is subject to customary regulatory approvals and is expected to close later in 2015.
Argo is an independent investment manager with a focus on long-term investment in infrastructure. Argo recently announced the first closing of its AIA infrastructure investment strategy with initial commitments in excess of $500 million.
CSC is a High Voltage Direct Current (“HVDC”) transmission system that provides a vital interconnection between the New England and Long Island power grids via a 24 mile (39 km) submarine cable spanning Long Island Sound. The entire transmission capacity of the cable is contracted with Long Island Power Authority (“LIPA”).
Richard Klapow, Managing Director at Argo, said: “We are pleased to have reached agreement to acquire this unique transmission system as AIA’s first investment. CSC’s long-term capacity off-take arrangement with LIPA and its state-of-the-art transmission technology are qualities that fit centrally within AIA’s investment targets.
CSC supports the reliability and resilience of Long Island’s power grid. We look forward to continuing the excellent relationships that CSC maintains with LIPA and its other stakeholders.”
Argo Infrastructure Partners is an independent investment manager with a long-term approach to infrastructure investing. Argo seeks investments with hard assets providing essential services. The firm’s investment group includes a highly qualified and experienced team of industry specialists with over $35 billion of transaction and investment management experience. Argo provides its investor partners with access to high-quality infrastructure investment opportunities with effective alignment of interest and unique transparency.
For more information, please visit www.ArgoIP.com or email info@ArgoIP.com
Photo courtesy of CrossSound Cable Co LLC