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Indigo offloaded

SEP sells gas pipeline firm to Arjun Infrastructure Partners

Scottish Equity Partners (SEP) has sold Indigo Pipelines, the third biggest independent gas distribution network in the UK, to Arjun Infrastructure Partners.

Financial terms have not been disclosed but subject to the satisfaction of certain conditions, the transaction is expected to complete by the end of February.

Indigo, which owns approximately 180 000 gas connections, was established in 1992 by Perth-based utility SSE as SSE Pipelines.

In September 2014, Indigo was acquired by the Environmental Capital Fund, managed by SEP. Under its ownership Indigo has continued to rapidly grow its network of connections throughout the UK.

Commenting on the transaction, Gary Le Sueur (pictured), a partner at SEP, said: “Over the course of the last few years, we have developed Indigo into a high quality and successful business.

“It is now one of the fastest growing companies in its sector with an impressive track record. The proposed transaction will provide a significant return to our investors.

Mr Le Sueur, who is also a non-executive director at Martin Currie, added: “We believe that AIP will be an excellent owner of the business and that Indigo will continue to perform strongly in the future.”

Surinder Toor, founding partner at AIP, said: “Indigo is a modern, high-quality, gas pipelines network in the UK with long-term, regulated cash flows and significant growth potential. It represents an exciting investment opportunity for our investors.”



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