By Bridgepoint Group, a private-equity firm, has announced its plans to acquire infrastructure specialist Energy Capital Partners Holdings and its affiliated entities. This strategic move is valued at £835 million ($1.05 billion) and will result in the creation of a global private markets asset manager with a total enterprise value of €57 billion ($61.11 billion).
The transaction is structured to consist of 235 million newly issued Bridgepoint shares, £233 million in cash, and £179 million of Energy Capital’s existing debt. Subject to shareholder approval, the deal is expected to be completed within the next four to six months.
Bridgepoint Group also revealed that it will initiate a new share repurchase program of £50 million once the current program concludes. This decision is driven by the company’s confidence in the enlarged company’s fundamental value and prospects.
In addition to the financial implications, the acquisition will lead to a board shakeup. Following the integration of Energy Capital, the positions of chief executive and chairman will be split. William Jackson will chair the Bridgepoint Group board while focusing on the core private equity business. Raoul Hughes, Bridgepoint’s Group Managing Partner, will take on the role of chief executive starting from October 1.
As a result of this news, Bridgepoint Group’s shares experienced a positive uptick of 2.3%, reaching 178.9 pence at 0739 GMT.
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