US private equity firm KKR & Co Inc has finalized a definitive agreement to purchase a 25% stake in Enilive, the biofuels subsidiary of Italian oil and gas giant Eni SpA, for EUR 2.938 billion (USD 3.163 billion). The deal, which has been in discussions since July, values Enilive at EUR 11.75 billion post-money.
Enilive specializes in biorefining, biomethane production, and smart mobility solutions, including the Enjoy car-sharing service. It operates over 5,000 filling stations across Europe, offering a range of sustainable fuels, including HVOlution biogenic fuel, bio-LPG, and biomethane. The subsidiary aims to enhance its biorefining capacity to exceed five million tonnes annually by 2030.
Eni highlighted that the partnership with KKR will strengthen its capital structure, reduce its net financial liabilities, and allow the company to maintain control of Enilive. The transaction will be financed through a capital increase of EUR 500 million reserved for KKR, along with the purchase of EUR 2.438 billion worth of shares from Eni. Additionally, Eni will conduct a capital increase of EUR 500 million before closing the deal to ensure a debt-free company structure.
Eni's CEO, Claudio Descalzi, stated that Enilive, alongside Plenitude, plays a pivotal role in the company's strategy to provide decarbonized energy solutions and reduce emissions. He noted that both companies have attracted significant interest from international investors, indicating strong market valuations and appreciation for Eni's approach to the energy transition.
KKR's investment is subject to customary regulatory approvals. The firm has been active in the Italian market since 2005 and plans to make the investment through its Global Infrastructure Strategy, which manages over USD 73 billion in infrastructure assets.
