- According to terms of the deal, Breakwater Energy, a new subsidiary of EIG, will acquire a 25 percent stake in Repsol Upstream for about $4.8 billion
- The total enterprise value for Repsol Upstream is about $19 billion
- Goldman Sachs and J.P. Morgan acted as financial advisors to EIG in connection with the transaction
EIG has agreed to acquire a minority stake in Repsol Upstream, a multi-energy company focused on achieving zero net emissions.
According to terms of the deal, Breakwater Energy, a new subsidiary of EIG, will acquire a 25 percent stake in Repsol Upstream for total consideration of approximately $4.8 billion, including debt, with Repsol holding the remaining 75 percent. The total enterprise value for Repsol Upstream is about $19 billion.
The company will be majority controlled by Repsol and will be consolidated in the accounts of Repsol.
“Energy transition informs every decision we make, and we are thrilled to partner with a global leader of Repsol’s stature on this compelling opportunity to lead change in our industry,” said R. Blair Thomas, EIG’s Chairman and CEO, in a statement. “Evaluation of ESG impact is integrated into EIG’s core investment and portfolio management functions, and we look forward to working with Repsol, a world-class operator and energy transition leader, to continue building on the business’s ESG best practices. As the world looks to meet the twin goals of decarbonization and reliability, we believe this partnership is well positioned to help meet the growing global demand for accessible, efficient and safe energy.”
The transaction is expected to close within the coming six months.
Goldman Sachs and J.P. Morgan acted as financial advisors to EIG in connection with the transaction. Goldman Sachs & Co LLC, J.P. Morgan and Lazard are acting as capital markets advisors in connection with the financing of the transaction. Latham & Watkins serves as EIG’s legal advisor.
EIG is a leading institutional investor in the global energy and infrastructure sectors with $24 billion under management as of June 30, 2022.