Power & Utilities
Deals Activity: Low
Restructuring Activity: High
Power & Utilities
During the first quarter of 2023, we noted 16 transactions in the Power & Utilities sector. Although this represents a decrease from the previous quarter, it is broadly in line with the average rate observed over the last few years. Significant deals that completed in Q1 2023 include:
- KKR’s $450m investment in India-based Hero Future Energies.
- Investment of £165m by Denham Capital Management into EV Chargers Limited, aimed at accelerating their strategic plan to install public electric vehicle charging points across the UK.
- Future Biogas acquired by 3i Infrastructure in February.
The deals activity in this sector has been influenced by:
- Energy transition – the energy transition continues to drive deals activity in the Power & Utilities M&A market. As investors focus on Environmental, Social and Governance (ESG) objectives as part of their wider criteria, companies with clear ESG credentials have been able to attract wider investor support.
Restructuring activity in this sector remains relatively high due to companies facing ongoing macroeconomic headwinds and supply chain snags. However, technological innovations and recent legislative changes surrounding battery storage developments offer a positive outlook on an industry aiming to secure clean and affordable energy.
Deals activity in Power & Utilities
Restructuring activity in Power & Utilities
Calon Energy Limited in administration
We were appointed as administrators over this leading Independent Power Producer in the UK, with a 2.3GW system-Critical Combined Cycle Gas Turbine (CCGT) portfolio across three sites. The power stations were placed into a 'deep preservation’ state and we worked alongside management to develop new business plans for the operating companies.
Spark Energy Supply Limited in administration
Initially engaged to assess strategic options following withdrawal of major funder support, we helped identify a buyer, but this required the insolvency of the trading business. This preserved 440 jobs and we facilitated the transfer of supply for 280,000 customers, representing the largest retail supplier to go through a SoLR process to date.
We reviewed the business plan and advised on options for a syndicate of lenders to a developer/operator of standby and flexible power capacity. This included a full IBR and contingency plan. We negotiated amendments to the facility agreement alongside a fresh equity injection and introduced a new chairman to address governance/control issues.
We helped an energy wholesaler evaluate its options following a spike in wholesale prices. Using our transformation expertise and specialist energy sector, we developed and implemented a strategic turnaround of the business. Our work retained shareholder value, preserved jobs and avoided disruption to energy retailers and their customers.
Find Your Expert
James Fagan is Head of ENR Cluster, which includes Power & Utilities as one of four core segments. James Camp leads our approach to Power & Utilities nationally, with transactional and advisory support from Alan Flower. For a full list of our senior people with experience in the sector use the button below.Our senior team