Background

  • In August 2020, Infracapital launched a sale process for Falbygdens Energi (FEAB)
  • FEAB owns and operates a regulated electricity distribution network, a district heating network and a fibre network in the Falköping municipality in Sweden
  • FEAB is the main electricity distribution system operator for the Falköping municipality with a network length of over 2,400km and with over 17,500 customers
  • FEAB also provides district heating services within the municipality through a network of 146km and over 1,100 connections
  • FEAB's fibre network has over 2,600 connections and over 4,200 service connections on the open network and over 100 dark fibre connections

Process

  • DC Advisory (DC) was engaged by Nordion Energi (backed by First Sentier Investors) to act as financial advisor providing M&A and debt advice on its acquisition of FEAB
  • DC contributed and advised on all relevant work streams throughout the investment process, including:
    • Process strategy and bid tactics
    • Financial modelling and valuation
    • Due diligence coordination
    • Debt advisory
    • Supporting negotiations and advising on transaction documentation

Outcome

  • In mid-December 2020, Nordion Energi (backed by First Sentier Investors) agreed to acquire FEAB from Infracapital
  • FEAB will become the third operating subsidiary of Nordion Energi, alongside Swedegas and Weum
  • DC ensured all work streams were successfully completed during a complex process
  • This transaction reinforces the strong knowledge and successful track record that DC has developed through multiple transactions in the utilities sector across Europe