M&A Transactions | Energex Partners

The acquisition of three market-leading European bulk liquids storage terminals located in Hamburg, Amsterdam and the Strait of Gibraltar
Total of 2.3 million cubic meters capacity storing a range of products spanning fuel oil, diesel, gasoline, base oils and chemicals
Number of blue-chip customers with supply chain integration
Enterprise value of the transaction approximately €725 million
Energex also provided the commercial due diligence for the refinancing of this portfolio at a later stage

Outcome:

Energex developed a long-term business plan to 2040, based on supply/demand outlooks, competitive landscape and contracted customer base
Attended site visits and management presentations for all three terminals to assess capabilities and growth potential. Worked closely with the buy-side technical advisors
Inputted into the buy-side financial model including generating feasible upside and downside scenarios
Energex delivered lender’s report with reliance for the successful financing of the transaction and analysis for insurance providers
Supported the Investment Committee’s analysis of the transaction from a commercial perspective
Our client successfully closed on the transaction in 2019

Acquisition of a pan-European oil & petrochemicals terminal portfolio

M&A Transactions – Oil & Petrochemicals

The Engagement:

Commercial Due Diligence
Bulk liquids storage terminals

The Client(s):

Major Infrastructure Investment Fund

Duration:

4 months

Transaction summary

Acquisition of a 45% stake in a bulk liquids storage terminal operator with assets located in France, the Netherlands, Belgium and Turkey
With a total of 3.5 million cubic meters capacity across 13 terminals, storing a broad range of liquids spanning petroleum, chemical and agri-food products
A diversified base of industrial customers with supply chain integration
Enterprise value of approximately €1 billion

Outcome

Energex participated in detailed site visits to the 6 largest terminals in the portfolio to assess capabilities and growth potential. Worked closely with the technical advisors
Attended the management presentations with our client and submitted Q&A based on commercial risks analysis
Energex developed the long-term business plan to 2040 feeding into the financial model, based on a detailed analysis of regional demand outlooks by product, competitive landscape for each supply envelope, the contracted customer base and upside growth opportunities
Supported the Investment Committee analysis of the transaction from a commercial perspective providing a detailed Commercial Due Diligence Report
Our client successfully closed on the transaction in 2019 and the portfolio has proven to be a platform for deploying capital through further acquisitions

Acquisition a global LNG shipping, supply & regasification portfolio

M&A Transactions – Gas & LNG

The Engagement:

Commercial Due Diligence

Global LNG portfolio of long term supply contracts, shipping and downstream offtake

The Client(s):

Major Global Asset Manager

Duration:

6 months

Transaction summary

Our client was seeking an entry into the global LNG market, with access to diversified, long-term contracted volumes of LNG, logistics and downstream supply outlets
Energex originated an investment opportunity with an international energy company considering an exit from their LNG portfolio
The portfolio consisted of multiple 20-year supply contracts totalling almost 5 million tonnes per annum of LNG supply, time charter contracts for LNG carriers and a portfolio of regasification contracts and multi-year wholesale supply contracts to industrial users in two continents

Outcome

Energex negotiated a period of exclusivity for bi-lateral negotiations between both parties
Facilitated all discussions and negotiations between both parties
Particular focus on transaction structure – profit sharing, earn-outs, JV – and credit arrangements to underpin the portfolio post-transaction
Provided commercial due diligence on the portfolio, valuation analysis on LNG contracts and long-term forecasting of LNG flows
The transaction did not finally close owing to issues with deal structure

The acquisition of new build LNG carriers

M&A Transactions – Gas & LNG

The Engagement:

Commercial Due Diligence
LNG newbuild vessels

The Client(s):

European Infrastructure Investment Fund

Duration:

2 months

Transaction summary

Proposed acquisition of two 180,000 cubic meter new-build LNG carriers
Vessels to be built in a major Korean shipyard for delivery mid-decade
Our client wanted to assess partnering with a renowned ship owner for the provision of management services for the construction and contract life of the new build LNG carriers.
Transaction supported by a long-term time charter contract with a major participant in the LNG markets, providing secure cashflows

Outcome

Provided the client with full commercial due diligence to support the submission of a binding offer and to secure debt financing
Detailed overview of the global LNG market and long-term LNG and gas supply and demand forecasts. Provided an overview of the LNG shipping sector
Directional analysis of long-term LNG shipping rates
Commercial review of commercial agreements including shipbuilding contracts and long-term time charter contracts (TCP), highlighting risk allocations and cost assumptions
Provided commercial inputs into the valuation model including re-contracting rates at the expiry of the TCP

Acquisition of a European LNG & LBG liquefaction plant

M&A Transactions – GAS & LNG

The Engagement:

Commercial Due Diligence

LNG & LBG liquefaction plant

The Client(s):

Midstream Gas Infrastructure Owner and Operator

Duration:

3 months

Transaction summary

Acquisition of a mid-scale LNG and LBG (liquid biogas) liquefaction plant in Northern Europe
Annual nameplate LNG production capacity of 300,000 metric tonnes with 28,000 cubic meters of storage capacity
State-of-the-art natural gas and biogas facility operating mainly on electricity produced from renewable sources
The facility plays a critical role in enabling a lower carbon footprint for the Nordic industrial and road transport market as well as the maritime sector across Northwest Europe
Competitive sales process organised by the vendor, a national utility. Transaction price not disclosed.

Outcome

Derivation of the appropriate tolling fee and structure based on market supply dynamics and alternative viable supply points (including small-scale LNG transportation costs) in Europe
Assessed tolling fee impacts on the asset under different demand scenarios
Commercial due diligence of contracts and operational set-up
Submitted a Valuation Assessment Report to our client, which was used for the Investment Committee decision process and financial modelling of the asset
Our client successfully closed the transaction in 2021

Acquisition of a European waste-to-value pyrolysis platform

M&A Transactions – Energy Transition

The Engagement:

Origination & Commercial Due Diligence

Waste Recycling Plant

The Client(s):

Global Infrastructure Investment Fund

Duration:

9 months

Transaction summary

Our client was seeking platform investment opportunities in the recycling and waste-to-value sector, to allow for a scaled-up deployment of capital over a 3-5 years period
The seller was seeking equity investment capital to fund the construction of a world-first commercial scale, 180,000 tonnes per annum waste tyre pyrolysis plant to convert end-of-life tyres (ELTs) into high-value products such as biofuels and chemical products
Long-term feedstock supply and product contracts were secured
There was an investment opportunity in the holding company, allowing for capital participation in a significant pipeline of additional plants in Europe and the US to become the global leader in waste tyre pyrolysis
Initial investment of €50-75 million with runway to deploy up to €500 million over 5 years

Outcome

Energex analysed and profiled the emerging ELT market across Europe and engaged directly with each of the major players to explore capital requirements, understand their business models and form a view on the commercial feasibility of each project
Selected and presented an investment opportunity to our client and proceeded with detailed due diligence
Built a financial model and 5-year business plan, with base, downside and upside cases
Conducted a detailed analysis of feedstock supply dynamics, logistics and regulations.
Conducted a detailed analysis of product off-take markets and pricing dynamics including subsidy regimes
Took on board advice on technology ‘readiness’ from technical advisors
Facilitated bilateral negotiations between our client and the target business.
Transaction did not close owing to eventual irreconcilable differences in final deal structure

Acquisition of a marine fuel storage and blending terminal

M&A Transactions – Oil

The Engagement:

Commercial Due Diligence
Bulk liquids storage terminal

The Client(s):

Major Infrastructure Investment Fund

Duration:

3 months

Transaction summary

Acquisition of a Rotterdam marine fuel storage and blending terminal
The terminal also provides ancillary services for ship owners.
Approximately 240,000 cubic meters capacity
Surplus land for capacity expansion with various options for development

Outcome

Energex participated in a detailed site visit to the terminal to assess capabilities and growth potential. Worked closely with the technical advisors
Detailed analysis of customer contracts, underlying business models and product flows
Undertook a detailed analysis of the outlook for marine fuel use over a 30-year time horizon, with forecasts and scenarios for changing marine fuels mix as a result of the decarbonization of the maritime sector
Energex developed the long-term business plan feeding into the financial model, based on a detailed analysis of regional demand outlooks by product stored, the competitive landscape for marine fuels supply in the ARA regions, and commercially feasible options for expansion
Supported the Investment Committee analysis of the transaction from a commercial perspective providing a detailed Commercial Due Diligence Report
Our client successfully closed on the transaction in 2020