BlackRock Seals $12bn Deal to Buy Global Infrastructure Partners
Main Highlights
* BlackRock, a leading asset manager, has acquired Global Infrastructure Partners (GIP) for a staggering $12 billion
* The deal marks the largest ever takeover of a private equity firm in the infrastructure sector
* BlackRock aims to expand its presence in the global infrastructure market, particularly in areas such as energy, transport, and telecommunications
Background
BlackRock, founded in 1988, is one of the world’s largest asset managers, with over $9 trillion in assets under management. The company has expanded its operations significantly over the years, diversifying its portfolio to include various sectors such as private equity, real estate, and commodities.
Global Infrastructure Partners (GIP), founded in 2006, is a leading global infrastructure and energy private equity firm. The company has invested over $30 billion in 100+ companies across various sectors, including energy, transport, and telecommunications. GIP’s portfolio companies operate in over 20 countries worldwide, generating $50 billion in annual revenue.
Transaction Details
The $12 billion acquisition deal, announced on February 25, 2023, will see BlackRock acquiring a 100% stake in GIP. The transaction is subject to regulatory approvals and is expected to close in Q2 2023. The deal values GIP at an estimated 13x multiple of its average annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) over the past five years.
The deal is expected to have significant implications for the global infrastructure market. With BlackRock’s deep pockets and global reach, GIP is likely to gain access to new markets and opportunities. The acquisition also marks a significant expansion of BlackRock’s private equity capabilities, allowing the company to take a more prominent role in the infrastructure sector.
As part of its strategy to grow its presence in the global infrastructure market, BlackRock has announced plans to continue investing in GIP’s existing portfolio companies, while also exploring new opportunities across various sectors. The acquisition is expected to create jobs and drive economic growth in the regions where GIP operates.
In conclusion, BlackRock’s acquisition of Global Infrastructure Partners marks a significant milestone in the company’s expansion strategy. The deal is a testament to BlackRock’s commitment to investing in key sectors and geographies, and is likely to create long-term value for stakeholders. As the deal goes through regulatory approvals and integration, BlackRock is expected to emerge as a dominant player in the global infrastructure market.
Frequently Asked Questions
Q: Why did BlackRock acquire GIP?
A: BlackRock acquired GIP to expand its presence in the global infrastructure market and grow its private equity capabilities.
Q: What is the value of the acquisition deal?
A: The acquisition deal is valued at $12 billion, making it the largest ever takeover of a private equity firm in the infrastructure sector.
Q: What are the main sectors in which GIP operates?
A: GIP operates in various sectors, including energy, transport, and telecommunications.
Q: When is the acquisition expected to close?
A: The acquisition is expected to close in Q2 2023, subject to regulatory approvals.
