KKR Acquires Leading Australian Independent Power Producer Zenith Energy

KKR, a leading global investment firm, today announced the signing of definitive agreements to acquire Zenith Energy (“Zenith” or the “Company”), a leading independent power producer (“IPP”), from a consortium including Pacific Equity Partners, OPSEU Pension Trust (“OPTrust”), and Foresight Group (together the “Consortium”), with Zenith’s founder and management retaining a minority stake. KKR’s investment will position Zenith well for continued long-term growth on the back of favorable sector fundamentals and macro tailwinds.

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Zenith specialises in the delivery of sustainable and reliable hybrid power solutions for remote, off-grid resource sector clients and urban microgrids for commercial, industrial, and residential precincts. Zenith provides an essential service for Australia’s large off-grid mining industry and the Company has established a strong track record over its 18-year operating history. Today, the Company has more than 710MW contracted capacity across ~15 sites, secured under long-term contracts.

Andrew Jennings, Managing Director and Head of Australia & New Zealand (ANZ) Infrastructure, KKR, said, “Zenith’s position at the forefront of the energy transition, coupled with its long-term relationships with strategic, high-quality counterparties, make it an ideal investment for our Asia Pacific infrastructure platform. Zenith has established itself as one of the clear leaders in deploying and managing hybrid power solutions in Australia, a priority market for KKR in Asia Pacific. We look forward to supporting Zenith and its management team over the next stage of growth and helping them capitalise on the significant opportunity for off-grid renewable power.”

Zenith’s CEO and Managing Director, Hamish Moffat, said: “We are excited by the opportunity presented by KKR’s investment in the company and its strategy, which is a strong validation of Zenith’s capabilities and competitive edge. The investment by KKR will accelerate our growth and ability to service large scale projects with a broad capital base. There are significant and immediate opportunities inherent in the decarbonisation of Australia’s mining sector, which Zenith is uniquely positioned to deliver via large-scale, high penetration, hybrid power projects. Today’s announcement positions the company to continue providing our distinct value proposition via these unique remote energy solutions to our existing clients, while enabling us to pursue a robust pipeline of new opportunities as Australia’s mining sector intensifies its decarbonisation efforts.”