Sempra Energy (NYSE: SRE) announced entry into a definitive agreement to sell a non-controlling interest in Sempra Energy’s business platform, Sempra Infrastructure partners to KKR for USD 3.37 Billion in cash. The leading global investment firm will obtain 20% interest in the business platform.
“Over the next decade, we expect the energy markets in North America to continue to grow and become increasingly integrated. Combining our resources with KKR improves our ability to capture new investment opportunities in cleaner forms of energy and the critical infrastructure that stores and transports it,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “This transaction also sends a clear signal about the value and expected growth of our infrastructure portfolio.”
“Investing in critical new energy infrastructure creates jobs, delivers reliable energy with fewer emissions and supports North America’s economic recovery,” said Raj Agrawal, KKR Partner and Global Head of Infrastructure. “That is why we are excited to partner with Sempra Energy. This infrastructure platform provides a strong foundation to expand cleaner energy resources across the continent. Backed by strong, contractually-supported, long-term cash flows, our investment is also consistent with KKR Infrastructure’s strategy to seek stable and predictable returns for our investors.”
KKR will make the investment through its global infrastructure investors funds.