PwC UK acts as lead financial adviser to Arcus on the acquisition of National Grid Smart
PwC UK is pleased to announce that it acted as lead financial advisor to Arcus Infrastructure Partners (“Arcus”) on the acquisition of National Grid Smart Limited (“NGS”).
A portfolio company of Arcus European Infrastructure Fund 2 has signed an agreement to acquire 100% of NGS, a meter asset provider (“MAP”) in the UK, from National Grid plc. The acquisition will be made via the entity that also funds Horizon, Arcus’ longest owned smart MAP.
“We are extremely pleased to announce the acquisition of NGS. Arcus has been invested in the UK smart metering space since 2019 and has seen first-hand the resilience of the sector to recent energy market turbulence. The addition of a further c.200k meters provides diversification and economies of scale as well as supporting the environmental and social benefits inherent in the smart meter roll out programme.”
"PwC’s Lead Advisory team has proven to be an exceptional partner throughout, from helping with our initial acquisition search, assisting us in formulating our initial approach and then right through to execution. Their team's enthusiasm and interest in the energy sector combined with their high level of M&A experience, commitment to excellence and their calm professionalism were instrumental in successfully navigating the complexities of this deal."
"We are delighted to have advised on this acquisition. Our client has made a strategic investment that aligns perfectly with the evolving landscape of the UK’s energy transition. Decarbonisation of buildings, alongside other sectors such as power generation and transport is essential to the objective of reaching Net Zero. Smart metering offers great potential for monitoring and efficient use of energy in the home. This showcases our unwavering commitment to helping shape a greener and smarter future.”
National Grid Smart
NGS is an established MAP in the UK electricity and gas markets, financing and leasing smart meters to energy suppliers under long-term contracts. NGS has an installed meter portfolio of c.200k meters which are on rental to a wide range of UK energy suppliers, including Octopus Energy and British Gas. NGS will be renamed HGS Ltd and will continue to be run as an independent meter portfolio, operated by the Horizon management team.
Horizon and Arcus
Horizon Energy Infrastructure is a funding and partnership solutions provider for energy transition assets and is owned and managed by Arcus Infrastructure Partners. Arcus Infrastructure Partners is an independent fund manager focused solely on long-term investments in European infrastructure. Arcus invests on behalf of institutional investors through discretionary funds and specialist co-investment vehicles and, through its subsidiaries, currently manages investments with an aggregate enterprise value of EUR c.21bn (as of 30 June 2023). Arcus targets mid-market, value-add infrastructure investments, with a particular focus on businesses in the digital, transport, logistics & industrials, and energy sectors.
PwC
The engagement team was led by James Pincus and Jonathan Massam, and supported by Robert Senger, Thomas Wellingham and William Maundrell.
This transaction further highlights PwC’s position as one of the leading financial advisors across the energy transition with the team also recently advising KKR on its landmark $750m investment in Zenobē Energy, DIF Capital Partners on its £200m investment into Field Energy as well as advising Hanwha Energy on the sale of a 200MW operational battery storage portfolio in the Republic of Ireland.
If you would like to discuss the energy transition and infrastructure M&A market then please contact James Pincus, Jonathan Massam or Robert Senger.
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