GENERAL

Greenergy

Acquisition of UK’s largest independent fuel distributor, ~$350mm equity- investment and lead director

Please note this investment was executed during prior employment of a Reinova Co-Founder

Amount Invested

$573m

Date of Investment

2017-2020

Transaction Overview

Brookfieldacquired acontrolling stakein partnership with the founder, who together with a key customer retained an interest

Transaction Overview

Brookfieldacquired acontrolling stakein partnership with the founder, who together with a key customer retained an interest

Investment Thesis

Greenergy business built over 25 years by replacing UK refineries with fuel import terminals and fuel blending, and securing multi-year distribution contracts
Recognized that combination of essential service and port-like market position in key regions provided recurring cashflows and supported 30-60% market share which was typically valued at much higher multiples
Differentiated thesis focused on understanding where the business makes money, margin resilience and executing a pivot to waste-based biofuels

Invest for Value

Lower Acquisition Price and Derisking via Seller Retained Interests

Acquired founder-owned business outside of auction by focusing on partnership and future value creation
Structured rollover with founder that created ability to complete transaction at attractive entry price
Structured rollover with pension fund of a large customer whose contract was maturing to derisk acquisition (and ultimately extending a significant contract)

Leveraged investing presence in multiple markets

Greenergy were looking to expand its small Canadian platform
Leveraged an in-process Canadian fuel station portfolio opportunity to create optionality for future business combination

Value Creation

Optimized Existing Business During Market Turmoil

Brought in new CEO, CFO, and transitioned from founder-owned culture/team
Responded to severe demand and supply shocks (COVID, Ukraine)
Enhanced commercial / pricing strategy
Optimized assets including terminal, production plants, and land holdings

Built Out New Waste-based Biofuel Business Lines and Enhanced feedstock vertical integration

Recognized value transfer to waste oil streams, vertically integrated supply chain
Acquired biofuel plant at a fraction of new build cost, executing conversion to waste fuels
Built a pipeline of advanced biofuel assets

Acquired similar founder-owned Irish business – integrated and drove synergies

Building for Exit

Maximized Value via Multiple Exits

Completed sale of Canadian fuel stations to industry buyer via structured sale
Retained land asset located next to the UK’s largest port which was sold separately

Sale to Industry Leading Strategic

Sold business to Trafigura plc, one of the world’s largest fuel traders
Buyer viewed biofuels as a strategic asset

Sale of additional retained land assets

Executed strategy to sell land asset to strategic

Greenergy

Amount Invested

Amount Invested

$573m

$573m

Date of Investment

Date of Investment

2017-2020

2017-2020

Transaction Overview

Transaction Overview

Transaction Overview

Investment Thesis

Investment Thesis

Invest for Value

Invest for Value

Lower Acquisition Price and Derisking via Seller Retained Interests

Leveraged investing presence in multiple markets

Value Creation

Value Creation

Optimized Existing Business During Market Turmoil

Built Out New Waste-based Biofuel Business Lines and Enhanced feedstock vertical integration

Acquired similar founder-owned Irish business – integrated and drove synergies

Building for Exit

Building for Exit

Maximized Value via Multiple Exits

Sale to Industry Leading Strategic

Sale of additional retained land assets

Status:

$700M

Return:

$700M

Returns

Returns

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