06th December 2016

Infracapital agrees sale of Calvin Capital to KKR

Infracapital, the infrastructure equity investment arm of M&G Investments, announces that it has agreed to sell 100% of the equity of Calvin Capital (“Calvin”), a leading provider of gas and  electricity meters to energy suppliers in the UK, to KKR, a leading global investment firm.

Financial terms were not disclosed and the transaction is expected to complete at the end of January 2017.

Calvin has grown significantly since Infracapital’s original investment in 2007 and has to date financed the procurement and installation of over six million meters, including c. two million smart meters, which allow consumers to better manage their energy use and energy companies to better manage their customer relationships.

With the support of KKR as its new shareholder, Calvin will continue to play a key role in the UK Government’s plans to install a smart meter in every home and business in Great Britain by 2020. The company has already secured contracts for over eight million smart meters in total.

Martin Lennon, Head of Infracapital, said: “Since Infracapital created the Calvin Capital business it has experienced incredible growth to become a leading meter asset provider with significant smart meter contracts secured. This transaction is testament to the entrepreneurial spirit and hard work of both the Infracapital and Calvin teams. We are confident that Calvin will continue to flourish under its new ownership and we wish the business and all its employees every success in the future.”

Jesus Olmos, Member & Global Co-Head of Infrastructure of KKR, said “We are delighted to be partnering with an exceptional business such as Calvin, which benefits from strong market positioning thanks to its exceptional management team, effective asset management and tried, tested & scalable IT systems. Calvin is perfectly positioned to support the UK Government’s plan to further roll out smart meters thanks to its strong track record of delivery and strong relationships with the UK’s leading energy suppliers.”

Jim Macdonald, CEO of Calvin Capital, said: “This is another substantial milestone for Calvin, reflecting our success in building a leading UK provider of smart meters with significant further growth potential. Smart meters play a crucial role in energy efficiency and improving affordability for customers and the support of a leading global investor such as KKR will allow us to further strengthen our platform and enhance our offering. We are very grateful for the support provided by Infracapital, our customers and lenders over the last 10 years and are excited to be working with KKR through the next phase of our growth.”