I Squared Capital to acquire Energia-owner Viridian in €1bn deal
Published 29/03/2016 | 08:25
Global investment manager I Squared Capital has agreed to acquire Viridian from Arcapita in a deal believed to be worth €1bn.
Viridian, which operates in the Republic as Energia and in the North as Power NI, has a 20pc share of domestic electricity sales volume on an all-Ireland basis.
The firm, which employs 480, also has around a 27pc market share of business electricity sales volume.
I Squared Capital partner Gautam Bhandari said the company intends to grow Viridian "to achieve its full potential".
“The acquisition of Viridian is consistent with our strategy of investing in robust growth economies, such as Ireland, and within those economies selecting companies with stable cash flows and a potential to grow the business organically and through bolt-on acquisitions.”
Viridian chief executive Ian Thom said the company's increased financial strength will help it capitalise on growth opportunities.
"We are excited by the opportunity to work with I Squared Capital, which brings a proven track record of successfully operating and helping to expand businesses such as Viridian," Mr Thom said.
The deal will be an all-cash transaction for 100pc of Viridian and is expected to be completed during the second quarter of 2016.
I Squared Capital has also undertaken to provide additional significant equity cushion by paying down approximately £145m in existing junior debt with new equity at closing.
The company says this will strengthen Viridian's capital position in order to support future growth.