DC Advisory acted as sole financial advisor on the sale of MapleCo (backed by OMERS, OTPP & SSE) to Equitix

Background

MapleCo was created in 2017 and is backed by Ontario Municipal Employees Retirement System (OMERS), Ontario Teachers' Pension Plan (OTPP) and SSE plc (SSE) (together, the ‘Sellers')
MapleCo has established itself as a strong development platform, benefiting from stable high quality cash flows, in FY 2020 MapleCo's normalised revenue and EBITDA were £35m and £31m respectively [1]
DC Advisory (DC) has a strong relationship with MapleCo and its Sellers:
- In 2017, DC assisted in the setting up of MapleCo, the negotiation of the foundation MAP contract and the securing of financing for Tranche 1
- In 2019, DC advised on the amendment and restatement of Tranche 1’s debt facilities
MapleCo acts as a Meter Asset Provider (MAP) by funding the purchase and installation of smart gas and electricity meters, its portfolio comprising of 1.6m installed meters and a further 3.7m contracted meters
SGN Smart, a subsidiary of SGN, provides management services and resources to MapleCo

Process

DC was mandated as sole sell-side advisor and coordinated the sale process through a competitive two stage auction
Following a process of focused pre-marketing, the sale was formally launched in May, with non-binding offers due in July
Phase II of the process kicked off in late July with binding bids due in September 2020
Throughout the transaction, DC managed a number of detailed work streams including;
- supporting the production of a full suite of due diligence and marketing materials;
- an information memorandum;
- a complex financial model including detailed financing;
- a management presentation;
- W&I insurance, transaction documentation (including SPA and ECL); and
- overall process management
DC also assisted with a number of negotiations with the existing lender group to ensure portability of Tranche 1 debt and assisted in MapleCo securing an additional contract for 1.15 million meters during the transaction

Outcome

DC ran a focused and competitive process with a number of binding bids received from prestigious and highly credible institutions
On 23 September, it was announced that agreement had been reached on the sale of a 100% equity interest in MapleCo to funds managed by Equitix Investment Management Limited
The transaction completed in November 2020

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