Alliander proposes to sell Kenter to ABP and OMERS Infrastructure

3 July 2023

Network company Alliander intends to sell its subsidiary Kenter to a consortium comprising ABP and OMERS INFRASTRUCTURE. Alliander, ABP and OMERS Infrastructure have reached an agreement on this. APG Asset Management is making the investment on behalf of ABP. Over the coming period, Alliander will complete the usual advice and approval processes with the competition authorities, Alliander shareholders and other parties. The intention is to have the transaction completed over the coming months.

At the end of 2022, Alliander announced that it would look for a new owner for Kenter. In recent months, the company completed a diligent sale process, paying close attention to the interests of all stakeholders. Alliander opted for a controlled auction in which – prior to starting the sale process and in consultation with the shareholders and the employee participation body – the company formulated quality requirements and assessment criteria. In the final choice of a new owner, careful consideration was given to the extent of implementation of the assessment criteria and how these would continue to be assured.

Alliander’s CFO Walter Bien says, “There was a lot of interest in Kenter. After completing a diligent process, we identified ABP and OMERS Infrastructure as the party to acquire Kenter. The commitment of this consortium to remain a shareholder for the longer term and to make a positive contribution to the energy transition provides the required assurance that the growth of the company, the development of the staff and the relationship with customers and suppliers will go ahead as envisioned. I am happy with the choice of ABP and OMERS Infrastructure, but at the same time I realise that as Alliander we are bidding farewell to Kenter and so losing a bit of our DNA.”

Reason for the sale

In recent years, Kenter has grown from a traditional metering company with 95 employees to an integrated energy solution provider with a staff of over 400. The organisation has continuously succeeded in making the most of opportunities in the market through its enterprising, customer-focused, innovative approach. Partly because the market in which Kenter operates is growing strongly, it is expected that in the future Kenter will play an even greater role in the energy transition and in offering its customers total solutions.

The work that Kenter is doing – and will continue to do in the future – is highly relevant to the energy transition. This relevance should really come into full bloom outside Alliander, given that, as a network company, Alliander has to deal with laws and regulations that place restrictions on the company. These restrictions are expected to increase further in the coming years and become an increasing obstacle to the work of Kenter and its staff. In addition, Alliander’s major task of increasing work output, responding faster to developments and working with partners to design the energy network of the future means that Kenter is not getting the attention it deserves within Alliander. To ensure that Kenter can continue to fulfil its ambition to be the number one partner in the Netherlands for energy data and energy supply in the future as well, Alliander decided to look for another owner for Kenter.

Room to grow

In ABP and OMERS Infrastructure, Alliander has found a party that can enable Kenter to make a greater contribution to the energy transition over the coming years by growing in new markets with new products and services.

Kenter CEO Erik van der Ende says, “I am delighted with the choice of ABP and OMERS Infrastructure. As a profitable, independent company, when it comes to the energy transition we take care of all the needs of our existing and new customers by offering total solutions in the field of energy infrastructure. Our market is an extremely attractive growth market. This proposed sale makes it possible for Kenter to really take full advantage of our growth potential. We look forward to continuing to work on the energy transition together with our customers, employees, partners and new shareholders.”

Harmen van Wijnen, Chairman of the Board of Trustees at ABP, said: “ABP likes to invest in the Netherlands in order to stimulate economic growth, employment and sustainable projects. We also want to contribute to the energy transition and wholeheartedly support our nation’s climate objectives. Therefore, investments in the electrification infrastructure are needed on a large scale. This investment benefits our three million participants in several ways. It does not only contribute to sufficient and sustainably generated energy in the Netherlands but also generates long-term value for our pension participants.”

Jan-Willem Ruisbroek, Head of Global Infrastructure Investment Strategy at APG, said: “The energy transition is propelling the electrification trend in the Netherlands and across Europe, aligning with the ambitious climate targets set by the EU. To ensure its success, substantial investments in essential electrical infrastructure such as transformers, meters, batteries and electric vehicle chargers are imperative for our society. By investing in Kenter, building upon our previous venture with Groendus last year, we intensify our efforts. We are looking forward to working with the management teams and talented staff to establish a national champion in the energy transition sector the Netherlands and abroad.”

Alastair Hall, Senior Managing Director and Head of Europe, OMERS Infrastructure, said: “We’re thrilled to announce OMERS second investment to enable the energy transition in the Netherlands. We look forward to growing a B2B energy solutions platform in the region, delivering energy infrastructure for businesses looking to meet their sustainability goals.”