Future Biogas, a portfolio company backed by 3i Infrastructure (LSE:3IN), has acquired the remaining 49% stake in a portfolio of six gas-to-grid anaerobic digestion facilities from Foresight Environmental Infrastructure for £104 million.
3i Infrastructure, the London-listed infrastructure investment trust, said the deal gives Future Biogas full ownership of plants it first took a 51% stake in during August 2024.
Since taking majority control, Future Biogas has delivered roughly 21% growth in EBITDA across the six plants, and the company said full ownership will let it accelerate capacity expansions and operational enhancements already identified across the portfolio.
The £104 million price tag matches 3i Infrastructure's September valuation expectations for the plants as part of Future Biogas.
The acquisition will initially be funded through an equity commitment from 3i Infrastructure alongside Future Biogas's existing cash, ahead of a refinancing of Future Biogas's capital structure; most of that equity funding is expected to be returned before 3i Infrastructure's financial year-end in March 2027.
"Full ownership will allow us to progress these investments more quickly, unlocking further growth and strengthening Future Biogas's position as a leading owner, developer and operator of anaerobic digestion plants in the UK," said Philipp Lukas, chief executive of Future Biogas.
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Bernardo Sottomayor, managing partner and head of European infrastructure at 3i Investments, the company's investment manager, said the deal simplifies the ownership structure and increases the scale of the platform, calling it "another important step in Future Biogas's growth."
The transaction follows 3i Infrastructure's completion in June of the TCR sale, which generated roughly €1.1 billion in proceeds used to repay its revolving credit facility in full, leaving the group with £267 million of cash and an undrawn £900 million facility at 29 September.