TPG Closes its Acquisition of Abengoa SA’s Transmission Assets
Transaction provides critical infrastructure assets with a supportive new shareholder
San Francisco and Fort Worth, Texas – June 4, 2018 – TPG, the global alternative asset firm, today closed its previously announced acquisition of Abengoa SA’s (Abengoa) operating electricity transmission line assets in Brazil. The assets generated Annual Permitted Revenue (“RAP”) of BR$ 580 million.
The assets, which were acquired from Abengoa’s Judiciary Recovery process, consist of seven brownfield transmission lines totaling 3,532km across 10 states in Brazil. The assets were formerly owned by Abengoa Concessões, a wholly owned subsidiary of the Spanish conglomerate based in Rio de Janeiro. With the acquisition and carve out, TPG is providing the portfolio of assets with support and strategic direction to drive sustainable future performance.
“Transmission assets are essential infrastructure and a strategically critical area of investment, so we are pleased to announce the close of this transaction, which represents our first infrastructure investment in Brazil,” said Edward Beckley, Partner at TPG. “We look forward to working with the management team and Company to strengthen, enhance, and grow the business.”
TPG is a global investor with a track record of navigating complex transactions and partnering with companies to overcome challenges unique to their specific industry or region. This transaction increases TPG’s presence in Brazil and represents an important investment for TPG Strategic Infrastructure (“TSI”), the firm’s dedicated infrastructure platform that pursues opportunistic investments on a global basis. TPG has a long history of investing in emerging and fast growing markets, with several investments in Brazil including Azul, Rumo, Digital House, Ebes, and Resultados Digitais.
TPG is a leading global alternative asset firm founded in 1992 with more than $82 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul, and Singapore. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, public equity and infrastructure. For more information, visit www.tpg.com.