Goldman portfolio firm signs €236m acquisition

Redexis Gas, the Spanish gas firm owned by GS Infrastructure Partners, has agreed to buy a number of distribution assets in its home market.

Redexis Gas, the Spanish natural gas distribution and transmission firm, has agreed to buy Gas Energia Distribucion de Murcia plus other natural gas distribution assets in Catalonia, Extremadura, Region of Madrid and Castile-Leon for a total price of €236 million.

The agreement has been signed with Naturgas Energia Distribucion, a subsidiary of Portugal’s EDP Group. The purchase price represents a multiple of approximately 12.5 times estimated pro forma 2014 earnings before interest, tax, depreciation and amortisation (EBITDA).

With the acquisition, Redexis Gas’s gas distribution business will have 5.2 million users across ten Spanish autonomous regions. It will also increase its connection points by more than 30 percent to over 500,000 and increase its total distribution and transmission network by 40 percent to 8,100 kilometres (km).

Gas Energia Distribucion Murcia distributes gas in 22 municipalities in Murcia and has the 65km Moratella-Mula transmission pipeline. Murcia is one of three new regions that will be serviced by Redexis Gas following the deal, in addition to Catalonia and Extremadura.

In December 2010, GS Infrastructure Partners’ second fund – GSIP II – acquired 80 percent of Redexis Gas (then known as Endesa Gas T&D) alongside co-investors.

Almost three years later, in November 2013, the same investors bought the remaining 20 percent in a deal valued at €130 million. The vendor is both cases was Endesa Group, a unit of Italian utility Enel.

When the 20 percent purchase was announced, it was revealed that GS Infrastructure Partners had invested €141 million in the expansion of Redexis’ network since the original 80 percent acquisition.

In April this year, Redexis Gas issued €650 million of bonds and agreed €300 million of new banking facilities in a €950 million refinancing.

Since investment bank Goldman Sachs launched GS Infrastructure Partners in 2006, it has raised over $10 billion for investment in the asset class. It focuses on the transportation and utilities sectors.