Greenergy, the UK’s largest supplier of road fuels, announces that it has reached agreement for Brookfield Business Partners (NYSE: BBU; TSX: BBU.UN) to invest in the business with the aim of accelerating growth.
Existing Greenergy management shareholders will invest alongside Brookfield Business Partners and will retain a 15% share in the business. As part of the process all existing non-management shareholders will exit the business. There will be no change to company strategy and the current management team will remain in place.
Andrew Owens, Greenergy Chief Executive, said:
“It has been our long-standing aim to increase our access to capital through a strategic investor. The participation of Brookfield Business Partners will allow us to participate in larger-scale strategic mergers and acquisition activities to propel our business to its next phase of development.”
Cyrus Madon, Chief Executive Officer of Brookfield Business Partners, commented:
“Our investment in Greenergy expands our footprint in the European market through a business that provides an essential service and a track record of providing customers with reliable and competitive supply. Greenergy is well positioned to continue growing its service offering for its long-term UK customer base, and we believe we can broaden the company’s operations outside of the UK by leveraging our global presence.”
The transaction is expected to conclude in Q2 2017. Its value has not been disclosed.