EQT Infrastructure Limited has agreed to sell Swedegas to Enagás Internacional S.L.U. and Fluxys Europe B.V. No financial terms were disclosed for the transaction that is expected to be completed by mid-April. Morgan Stanley, Vinge and KPMG advised EQT Infrastructure on the deal. Swedegas owns Sweden’s entire gas transmission network.
23 March 2015
EQT Infrastructure has agreed to sell Swedegas to Enagás and Fluxys, two leading European gas transmission companies
Under EQT Infrastructure’s ownership, Swedegas has improved its market position through consolidation of the Swedish gas transmission market, through connection of new customers to the network and through growth initiatives such as LNG and biogas
EQT’s industrial model and local presence have been the catalysts for Swedegas’ transformation
EQT Infrastructure Limited (“EQT Infrastructure”) has reached a definitive agreement to sell 100% of Swedegas AB (“Swedegas” or “the Company”) to a 50-50% consortium of Enagás Internacional S.L.U. (“Enagás”), part of Spain’s leading natural gas transmission company Enagás S.A., and Fluxys Europe B.V. (“Fluxys”), part of Belgium-based fully independent natural gas infrastructure group Fluxys SA. The transaction is expected to close by mid-April.
Swedegas was acquired by EQT Infrastructure in February 2010 and is the owner of Sweden’s entire gas transmission network consisting of 601 km of pipelines, extending from Dragör in Denmark to Stenungsund in Sweden. The Company transports approximately 1.2 billion Nm3 of gas annually to distributors and industrial end-users in the southwest region of Sweden.
During EQT Infrastructure’s ownership, Swedegas has grown substantially and further improved its position on the Swedish energy market. The Company has, amongst others, secured consolidation of the Swedish gas transmission market, connected new customers to the network and become the Transmission System Operator (“TSO”) with responsibility for balancing of the gas transmission system. In addition, Swedegas has strengthened its organization to improve operational excellence and enable further growth. These efforts have resulted in substantial growth in the number of employees of around 60%.
Stefan Glevén, Partner at Investment Advisor EQT Partners AB, comments: “It has been a great journey. Since 2010, Swedegas has undergone an extraordinary transformation illustrating the efficiency of EQT’s governance model and industrial approach. With the strong strategic potential of natural gas, LNG and biogas in the energy mix, driven by environmental, cost reduction and energy supply security targets, we believe that Swedegas will continue to benefit from favorable market trends and a new stable regulatory regime. EQT Infrastructure is pleased to sell Swedegas to Enagás and Fluxys, two of the leading European gas transmission companies. We are convinced that these long-term industrial players will carry Swedegas into the next phase of growth.”
Lars Gustafsson, CEO of Swedegas, adds: “During EQT Infrastructure’s ownership, Swedegas has changed its strategic direction and has a lot of further potential for the future. In addition to having captured several venues of growth, the organization has been greatly strengthened resulting in an increased commercial mindset and operational excellence. We are excited to keep developing the Company together with Enagás and Fluxys and to, amongst others, continue executing on our strategy of building regional grids and LNG terminals across Sweden.”
Jesús Saldaña, Strategy and Business Development General Manager Enagás comments: “The acquisition of Swedegas is in line with the Enagás’ 2015-2017 Strategic Update. It is within our core business, provides stable and predictable cash flows, fits with the goals of profitability and debt ratios and allows Enagás to participate in all material decisions in a partnership with a high-level player as Fluxys.”
Walter Peeraer, CEO Fluxys, comments:”Swedegas’ management has a strong track record and Fluxys looks forward to team up and continue the Company’s success. Both Fluxys and Enagás are long-standing LNG infrastructure players and we see great opportunities for sharing knowledge with Swedegas’ highly experienced staff and developing the small-scale LNG market in Sweden.”
EQT Infrastructure has been advised by Morgan Stanley, Vinge and KPMG.
EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the US with total sales of more than EUR 25 billion and over 550,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
EQT Infrastructure is a EUR 1.2 billion fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America. Investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and infrastructure-related services.
More information can be found on www.eqt.se
Swedegas is the owner of Sweden’s entire gas transmission network consisting of 601 km of pipelines, extending from Dragör in Denmark to Stenungsund in Sweden. Each year, Swedegas transports approximately 1.2 Bn Nm3 of gas to distributors and industrial end-users directly connected to the network. The gas grid supplies natural gas to 33 municipal areas and several combined heat and power plants. Natural gas is also used in 37,000 households and in the transport sector. Recently, Swedegas has also begun to transport biogas in the grid.
More information can be found on www.swedegas.se
ABOUT ENEGAS AND FLUXYS
Enagás is the Technical Manager of the Spanish gas system and the main carrier of natural gas in Spain, where the company owns approximately 11,000 km of pipelines, five regasification plants and three underground storage facilities. Enagás is also present in Mexico, Chile and Peru, and it joined Trans Adriatic Pipeline (TAP) project, linking Turkey with Italy via Greece and Albania.
More information can be found on www.enagas.es
Fluxys is a Belgium-based, fully independent gas infrastructure group. The company is a major gas transit operator and its offering combines gas transmission, gas storage and terminalling of liquefied natural gas (LNG). Present in 8 countries, the company focuses on safe, efficient and sustainable operations, quality services in line with market expectations and creating long-term value for its shareholders.
Besides its pipeline, storage and LNG terminalling assets in Belgium (owned and operated by NYSE Euronext listed Fluxys Belgium), Fluxys’ partnerships include ownership in the Interconnector and BBL pipelines linking the
UK with mainland Europe, the Dunkirk LNG terminal under construction in France, the NEL and TENP pipelines in Germany, the Transitgas pipeline in Switzerland and the TAP pipeline from Turkey to Italy to be constructed so as to bring gas coming from Azerbaijan to Europe.
More information can be found on www.fluxys.com