Terra Firma's Infinis considers IPO

Ellie Pullen
27 September 2013

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Terra Firma-backed Infinis, a UK-based independent renewable energy generator, is preparing for a potential IPO.

The company announced its plans alongside a statement regarding the appointment of Ian Merchant as chairman of Infinis Energy. Infinis Energy is described as the new holding company for the Infinis group set up ahead of the potential flotation.

According to reports, the company could be planning to raise up to £1.5bn in the possible IPO.

Infinis was created when Terra Firma split portfolio company Waste Recycling Group (WRG) into two subsidiaries: waste disposal and renewable energy. Terra Firma bought WRG in 2003 for €836m and followed this investment with the €357m acquisition of the UK landfill business of landfill operator Shanks in the same year.

Terra Firma then merged the two businesses and sold off the waste disposal division for €1.4bn to Fomento de Construcciones y Contratas in 2006. The GP retained the renewable energy division, renaming it Infinis, and brought in a new management team, specifically a new CEO, CFO, commercial director and head of wind development.

In February this year, Infinis announced an offering of £350m in senior notes, due to mature in 2019 and with a 7% coupon. The proceeds from the offering were used to repay the company's outstanding £275m in senior notes, which were due to mature in 2014 and had an interest rate of 9.125%.

Infinis operates 147 power plants comprising 121 landfill gas sites, 16 onshore windfarms and 10 hydro sites. According to the company, it holds a 40% share of the UK market for generators of electricity from landfill gas.

Infinis is headquartered in Northampton and employs 375 staff. The company recorded turnover of £225.9m for the year ending in March 2013, as well as an EBITDA of £125.4m.

Eric Machiels is the chairman and CEO of Infinis. The company's governance board includes several Terra Firma employees: Lorcan Woods, Terra Firma's finance director for portfolio businesses; operational managing director Stefan Thiele; director Radu Gruescu; financial managing director Damien Darragh; and operational managing director Mike Kinski.