Frog Capital, the growth investor, has agreed to sell its stake in agri.capital, Europe’s leading producer of biogas energy, to Alinda Capital Partners, the world’s largest independent infrastructure firm.
As well as purchasing shares from existing shareholders, Alinda will invest €300m in agri.capital over the next three years, to support planned business growth. This is another landmark transaction in the European cleantech industry, following the sale of SiC Processing in 2010.
This is Frog’s third profitable exit in the last year, in deals which together have an aggregate transaction value of €1 billion. Last year, Nordic Capital acquired industrial recycling company SiC Processing, and Amazon acquired BuyVIP, a leading on-line retailer.
Based in Munster, Germany, agri.capital has grown from inception in 2004 to become Europe’s largest biogas producer, using the product of the natural biological decomposition of organic matter, or biomass, derived from energy crops and agricultural waste. The company currently has over 60 production facilities in operation or under construction, capable of collectively producing 400 gigawatt hours of electricity per year. The company has significant expansion opportunities in Germany and Italy and sees additional growth opportunities in other European countries. Agri employs 130 people and generates revenues averaging €1m–€2m per annum from each plant.
Frog Capital invested in agri.capital in 2010, as part of a 2009 €60m round of funding. Commenting on Frog’s exit from agri.capital, Frog Partner Iyad Omari said: “We are delighted with the progress agri.capital has made and believe this landmark investment from Alinda will help leverage the considerable momentum and potential the company has to build on its leadership position in the biogas sector.”
“Alinda’s commitment to agri.capital will provide the growth equity capital required to realise the full potential of our business,” said agri.capital’s CEO, Dr. Anton Daubner. “Biogas is unique among renewable energy sources in being reliable, storable, and transportable, with applications for electricity, heating, and transport. We believe biogas and biomethane will be critical to Europe’s reaching its renewable energy and greenhouse gas reduction targets for 2020 and beyond.”
NOTES TO EDITORS
About Frog Capital
Frog Capital is a London-based investment partner to some of Europe's most ambitious growth-stage companies. Frog invests across the cleantech and IT & digital media sectors, leading or partnering in fundings of €2 million to €20 million for expansion capital, minority purchases, management buy-outs, or acquisitions. Occasionally, Frog invests in quoted companies.
Last month Frog announced its fifth new investment within the last year, an investment in Rated People which is transforming the £39 billion home improvement industry by providing a trusted, convenient online marketplace to connect homeowners and tradesmen, creating substantial value for both.
Alinda Capital Partners is the world’s largest independent infrastructure firm, with over $7 billion in equity commitments to infrastructure investments. Alinda’s infrastructure companies serve over 125 million customers annually in more than 400 cities. The companies operate in the US, Canada, the UK and the Netherlands, and employ more than 15,000 people.
Alinda’s investors are predominantly pension funds for public sector and private sector workers. These institutions seek steady investments over the long term, matching their pension liabilities. They include some of the largest institutional investors in the world.
The Partners of Alinda Capital comprise a highly experienced team in infrastructure investing. They have been responsible for over $150 billion of infrastructure investing and financing, spanning more than 20 years. We look for infrastructure assets in North America and Europe that have a strong operating record.