Houston, Connecticut and London-based private equity firm First Reserve has sold North Sea gas production firm Caledonia Oil & Gas Limited to global power and gas firm E.on for £470 million (€691 million; $830.4 million).
Caledonia Oil and Gas has interests in a total of 15 gas fields in the UK Southern North Sea. The firm also owns Caledonia Energy Trading Limited and has interests in two pipeline systems for transporting gas to the UK.
First Reserve acquired Caledonia Oil & Gas two years ago for an undisclosed amount, according to Honeybourne. The company was founded by First Reserve and the former management team of Highland Energy, a company First Reserve had previously backed and sold.
“We realised that it would exceed our return targets if we were to sell Caledonia,” Honeybourne told PEO. “We considered options including floating the company or selling it, and in the end decided to see a limited number of offers.” Honeybourne added that bids came mainly from trade buyers, although there were some financial buyers involved.
Energy-focused First Reserve has $4.7 billion under management in four active funds. Current investments include Dresser, Dresser-Rand, Power Well Services and Southern Cross.