Arcus Infrastructure Partners sell smart metering companies to KKR

HEI and SMA’s portfolio represent a total of 3.5 million installed energy meters, and together the new group will manage more than six million meters. HEI and SMA are currently owned by Arcus Infrastructure Partners, who will transfer ownership to KKR. KKR acquired SMS in April this year. The transaction, which is subject to regulatory approvals, is expected to close in early 2025.

Smart meters are a key enabler of the UK’s net zero 2050 ambitions, providing critical infrastructure to support the transition to a decarbonized and digitized energy system. The combination represents an important step in the group’s growth, expanding the existing meter asset base and pipeline with complementary assets.

The combination also supports the group’s mission to create a more sustainable energy future by adding opportunities in adjacent markets such as solar, energy storage, heat pumps, and EV charging infrastructure. It also enables the group to broaden its presence in the UK and expand its innovative solutions into new sectors, such as Germany and the UK water sector.

The A&O Shearman team was led by partner, Edward Holmes and senior associate Anthony Bowen. Other members of the team were: partners, David Weaver, Tim Harrop, Jocelyn Land and Sarah Henchoz; counsel, Jess Bowring; senior associates Olivia Hardy, Lindsay Morrison, James Pritchard; associates Laura Green, Holly Gardiner, Jake Manton, Daisy Cutler. Nathalie Warke, Geraldine Chan, Will Chuter; trainees Adrian Taylor, Keely Larson, Jon Dunne, Aidan Swietochowski.