3i Infrastructure acquiring Joulz Diensten in EUR 220m deal

3i Infrastructure has agreed to invest €220m to acquire 100% of Dutch energy infrastructure equipment and services provider Joulz Diensten, it announced on Wednesday.

The FTSE 250 company said it was acquiring Joulz from Stedin Holding, a Netherlands distribution grid operator, with completion remaining subject to certain third party approvals.

It said Joulz leased essential energy infrastructure equipment and meters to a “large and diversified” customer base of industrial, commercial and public sector customers.

The firm had two business units - infrastructure services and metering - each generating around 50% of total revenue.

3i explained that the infrastructure services business unit designed, installed, leased and maintained medium voltage electricity infrastructure such as transformers, switchgear and cables under long-term contracts.

Medium voltage equipment was used in large commercial, office and multi-storey residential buildings and industrial sites with high electricity load, and was described as “critical” for customer operations.

The metering business unit leased, operated and read around 50,000 electricity and gas meters for non-household customers under medium-term contracts.

Joulz was described by 3i as one of the market leaders in the sector, also providing data analytic services to help customers understand their energy usage and improve energy efficiency.

3i said Joulz was set to benefit from the Dutch government's commitment to decarbonising the economy through the electrification of heat and transport, a focus on increased energy efficiency and the expansion of renewable generation.

The so-called ‘energy transition’ was expected to increase electricity consumption and demand for medium voltage equipment, with the focus on increased energy efficiency expected to drive growth in sub-meters and data analytics.

“Joulz is an attractive addition to our portfolio, with a strong established asset base as well as good potential for growth as the Netherlands accelerates its transition to more sustainable energy use,” said 3i Infrastructure chair Richard Laing.

Phil White, managing partner and head of infrastructure at 3i Infrastructure’s investment manager, 3i Investments added that the firm was “attracted” by the market opportunity for Joulz, explaining that he looked forward to supporting the management team to achieve the ambitious goals they had for the business.

“3i has a long and successful track record of investing in the Netherlands as well as relevant experience to bring to bear from previous investments in the electricity and asset leasing sectors.”