Vauban Infrastructure Partners announces the closing of the acquisition of a leading district energy platform located in the United States

PARIS, May 23, 2022 /PRNewswire/ -- Vauban Infrastructure Partners ("Vauban") acting through investment funds under its management, is pleased to announce the acquisition of DB Energy Assets, LLC ("DBEA") and Beacon Energy Holdings LLC ("Detroit Thermal") (together, the "Company"), that collectively own a portfolio of eight district heating and cooling systems across the Northeast and Midwest, from Basalt Infrastructure Partners II LP ("Basalt") and DCO Energy, LLC ("DCO Energy").

The platform represents an attractive portfolio of district energy systems diversified by location, technology and customers, supported by an experienced management team. The Company currently operates across five states, providing reliable, sustainable, and cost-efficient sources of energy solutions to a diverse customer base across the higher education, healthcare, commercial, manufacturing, hospitality, government, and retail sectors.

The Company has recently enhanced its asset base by executing several strategic acquisition projects and benefits from a strong additional growth potential. Following the completion of the transaction, Vauban Infrastructure Partners plans to continue supporting the Company's development and to further enhance long-term growth of the platform. Vauban will partner with DCO Energy, who will maintain operations and maintenance of the facilities under a long-term contract. DCO Energy will also support Vauban with the carbon footprint reduction objectives and ongoing investment in the development and expansion of the facilities and asset base. DCO Energy is an industry-leading developer and operator with experience managing district energy systems, as it has driven the development and acquisition of the facilities in the Northeast and has operated these facilities post-development or acquisition.

The transaction expands Vauban's global footprint to the United States and demonstrates Vauban's commitment to sustainability, while building upon its significant experience owning and managing district energy systems. Vauban's interest in acquiring the Company and the facilities is also driven by its commitment to support the ongoing operations of the Company and build its long-term growth, as it believes there is an opportunity to expand the Company's customer base while reducing the environmental impact of the facilities over time.

The transaction leverages Vauban's significant experience in the district energy and heating sector since 2016. Vauban currently holds controlling interests in five assets, totaling ~USD 2.2bn in enterprise value in Finland, France, Italy, Norway, and Spain. The deal echoes Vauban's strategy of building long-term relationships with industrial partners. Vauban benefited from the support of its three local Senior Advisors and experts (Leonie Maruani, Steven Klein, and Olivier Ta) with combined experience of over 60 years in the North American infrastructure market.

Gwenola Chambon, CEO and Founding Partner at Vauban Infrastructure Partners comments: "Through this landmark transaction, Vauban Infrastructure Partners enters into the U.S. district energy market. This acquisition will allow Vauban to leverage its considerable experience in the European district energy market and is an important first step for Vauban in building a sustainable, long-term platform in the United States."

Mounir Corm, Deputy CEO and Founding Partner at Vauban Infrastructure Partners comments: "This groundbreaking acquisition in the U.S. district energy market expands our global energy transition and district energy footprint. Vauban is delighted to strengthen its presence in district energy networks and to support their development in the United States, through a long-term collaboration with DCO Energy, which is in line with our strategy to build long-term relationships with industrial partners."

Gary Fromer, CEO at DCO Energy comments: "DCO Energy is excited and proud to partner with Vauban in its commitment to accelerate our investment in reliable, resilient and sustainable energy for the benefit of our customers and local communities. These district energy systems, operated by highly-trained and committed local employees, represent a unique vehicle for energy transition for our local and regional stakeholders and partners.

All customary regulatory and other approvals have been satisfied before the closing date.

Vauban was advised by RBC Capital Markets as a financial advisor and Allen & Overy as legal advisor, as well as KPMG, Arup, PA Consulting Group, Cushman & Wakefield, Aon and Ester.

Basalt and DCO Energy were advised by TD Securities as financial advisor and Morgan Lewis & Bockius as legal advisor.

Vauban Infrastructure Partners is a leading Infrastructure Asset Manager focused on core infrastructure investments. Headquartered in Paris, it employs 58 professionals who have been working together for more than a decade. Vauban is dedicated to sustainable infrastructure equity investments. Vauban targets predominantly mid-market infrastructure assets pursuing a long-term yield-driven strategy matching the underlying nature of assets and long-term commitment to all stakeholders' interests through a strong focus on creating sustainable value. Vauban has raised c. $7.8 billion across 6 funds in core infrastructure from over 70 investors within 15 different countries, and has invested in over 65 assets in mobility, energy transition, social & digital infrastructure across 12 different geographies.https://vauban-ip.com  

DCO Energy, LLC is an independent energy and industrial process development company specializing in engineering, construction, operations and maintenance, asset management and ownership of district and central energy centers, renewable energy and combined heat, chilling and power production facilities, waste-to-energy facilities and industrial process manufacturing and recovery facilities across North America.https://www.dcoenergy.com

Press Contact Camille Houel – Senior Consultant – Havas Tel.: +33 (0) 644 34 40 81 [email protected]

Vauban Investor Relations Contact Daria Litvinova – Head of Investor Relations - Partner Tel.: +33 (0) 607 03 24 12 [email protected]

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SOURCE Vauban Infrastructure Partners