Actis sells Mexican power producer Saavi Energía to GIP
UK-based investment firm Actis said that it has divested Saavi Energía, a Mexican independent power producer, to Global Infrastructure Partners (GIP) for an undisclosed price.
Saavi Energía has a geographically diverse portfolio of 2.2GW, comprising half a dozen combined cycle power plants (CCGTs), three compression stations, and 65km of associated natural gas pipelines.
The company mainly caters to the Mexican power market apart from offering reserve capacity for certain markets in California.
Jaime Tupper — CEO of Saavi Energía said: “Partnering with a global leader in infrastructure investing is an exciting opportunity to deliver on Saavi Energía’s strategic vision for growth to help meet Mexico’s energy needs.
“During the last three years, we have transformed the Company into an independent, Mexican leader in the energy space. Today, Saavi is a high performing company with a deep commitment to safety, sustainability and we are excited for what the future holds.”
For Global Infrastructure Partners, the acquisition of Saavi Energía follows its last year’s investment in the latter’s $325 million secured term loan, which will be repaid as part of the deal. Besides, the deal is the first direct equity investment of Global Infrastructure Partners in Mexico.
Saavi Energía was created originally in 1995 via Actis’ acquisition of the Mexico portfolio of global power generation firm InterGen. The company supplies power to more than 12 million homes in Mexico.
Adebayo Ogunlesi — Chairman and Managing Partner of Global Infrastructure Partners said: “Saavi has an exceptional record of providing reliable and efficient energy to leading industrial companies in Mexico. We look forward to working with the management team that has helped build this highly successful business to pursue growth opportunities in both traditional and renewable energy and further broaden its commercial footprint.”