Sempra Energy has sold a 20 percent interest in the new business platform, Sempra Infrastructure Partners, to global equity fund Kohlberg, Kravis, Roberts (KKR) for $3.37 billion in cash.
“This transaction values Sempra Infrastructure Partners at around $25.2 billion, including expected asset-related debt at closing of $8.37Bln,” said Sempra, developer of the Cameron LNG export plant in Louisiana on the Gulf Coast and the Costa Azul project in northern Mexico.
In a series of transactions outlined at the end of 2020 that are intended to simplify Sempra Energy's non-utility infrastructure investments under one self-funding platform, the San Diego-based company combined the strengths of Sempra LNG and Sempra’s Mexican arm, IEnova.
“Over the next decade, we expect the energy markets in North America to continue to grow and become increasingly integrated,” said Jeffrey W. Martin, Chairman and Chief Executive of Sempra Energy.
“Combining our resources with KKR improves our ability to capture new investment opportunities in cleaner forms of energy and the critical infrastructure that stores and transports it,” added Martin.
The CEO explained that the transaction also sent a clear signal about the value and expected growth of its infrastructure portfolio.
“Investing in critical new energy infrastructure creates jobs, delivers reliable energy with fewer emissions and supports North America's economic recovery," said Raj Agrawal, KKR Partner and Global Head of Infrastructure.
“That is why we are excited to partner with Sempra Energy. This infrastructure platform provides a strong foundation to expand cleaner energy resources across the continent,” added Agrawal.
“Backed by strong, contractually-supported, long-term cash flows, our investment is also consistent with KKR Infrastructure's strategy to seek stable and predictable returns for our investors,” he stated.
The transaction is expected to be completed by mid-2021, subject to customary closing conditions, including consents from certain third parties and regulators.