Inflexion and Equistone sell UK Power Reserve to Sembcorp

Unquote understands that the deal, which brings to an end a holding period of two and a half years, gives the company an enterprise value of around £340m.

It is also understood that the deal generated an IRR of more than 40% for both GPs. It is the first exit for 2014-vintage Inflexion Buyout Fund IV, while Equistone was invested in the business via 2014-vintage Equistone Partners Europe Fund V.

The sale, which took place via a competitive auction process, sees Inflexion and Equistone each divest a 42.5% stake in UK Power Reserve, with the management team selling its 15% holding.

Under the GPs' tenure, the business has trebled its capacity, increased its headcount from 70 to 150 and grown its revenues from £20m to £80m, according to a statement.

As part of the sale, UK Power Reserve founder Tim Emrich will step down from his role as CEO, with current chief commercial officer Sam Wither taking the reins at the company.

Previous funding
Inflexion and Equistone acquired a majority stake in UK Power Reserve in November 2015.

Company
Founded in 2010, Solihull-headquartered UK Power Reserve develops, owns and operates low carbon power generation and battery storage assets. It operates across 32 projects in England and Wales and currently generates 533 MW, with facilities generating a further 480 MW currently in development. The company's projects are designed to help counter the intermittency of renewable power sources.

People
Inflexion Private Equity – Simon Turner (managing partner).
Equistone Partners Europe – Phil Griesbach (partner).
UK Power Reserve – Tim Emrich (founder).
Sembcorp Industries – Neil McGregor (president, CEO).

Advisers
Vendor – RBC (corporate finance); Addleshaw Goddard (legal).

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• Topics
• Exits
• UK / Ireland
• Industrials
• United Kingdom
• Inflexion Private Equity
• Equistone Partners Europe
• Trade sale
• Addleshaw Goddard