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Wren House to Acquire North Sea Midstream Partners from ArcLight.

M2 EQUITYBITES-July 25, 2018-Wren House to Acquire North Sea Midstream Partners from ArcLight


25 July 2018 - UK-based infrastructure investor Wren House Infrastructure Management and US-based private equity firm ArcLight Capital Partners have signed an agreement for the sale and purchase of North Sea Midstream Partners the largest independent North Sea midstream business, the firms said.

Wren House has agreed to acquire ArcLight's entire stake in the company.

NSMP has interests in and operates four large scale natural gas transportation and processing assets in and around the North Sea.

The assets, which form a key part of the UK's gas infrastructure, include a 67% operated interest in the Shetland Island Regional Gas Export System pipeline, which transports natural gas from the prolific West of Shetland basin, and a 100% operated interest in the Frigg UK pipeline which transports gas from the SIRGE pipeline and various fields in the Northern and Central North Sea.

NSMP also owns a 100% operated interest in the associated St. Fergus Gas Terminal and the Teesside Gas Processing Plant.

NSMP was established in 2012 by ArcLight, Mike Wagstaff (the former CEO of Venture Production plc) and the senior management of TGPP, including CEO Andy Heppel, to acquire and consolidate assets in the midstream sector of the North Sea's oil and gas industry.

Through this partnership, NSMP successfully integrated its FUKA, SIRGE, and SFGT investments, demonstrated a strong track record of securing new business via long-term contracts, implemented numerous operational initiatives, and helped to bring new fields online, including the Greater Laggan Area, Breagh, and Stella Harrier.

Wren House was attracted to NSMP's core infrastructure characteristics with a strong revenue stream underpinned by long-term contracts, diversification across various North Sea gas basins within NSMP's catchment areas, including Norway, and the potential for future growth, as well as its excellent management team with a track record in operations and business development.

Wren House has a long-term ownership horizon and NSMP is an addition to Wren House's global infrastructure investment portfolio, which includes other critical UK infrastructure assets (such as Associated British Ports, London City Airport and Thames Water), and other investments in companies in Spain, Latin America, Turkey and Australia.

The transaction is expected to complete in 2018, following the receipt of customary merger clearance.

Terms of the transaction have not been disclosed.

BofA Merrill Lynch acted as exclusive financial adviser to ArcLight and Freshfields Bruckhaus Deringer LLP acted as its legal adviser. Jefferies and Macquarie Capital acted as financial advisers to Wren House and Slaughter and May acted as its legal adviser.

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Publication:M2 EquityBites (EQB)
Geographic Code:0NORT
Date:Jul 25, 2018
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