Herbert Smith Freehills is advising new client Energy Capital Partners, a US private equity firm with a focus on investing in energy and energy infrastructure sectors, on its US$1.1 billion acquisition of EnergySolutions Inc. The transaction was signed on 7 January 2013.
EnergySolutions Inc is a leading nuclear and environmental services provider listed on the NYSE. It holds the current contract to manage the UK’s Magnox nuclear sites through its subsidiary EnergySolutions EU Limited. It also operates a major low-level nuclear waste facility in Utah, and holds contracts to decommission the Zion nuclear plant in Illinois and to assist with water decontamination at the Fukushima nuclear plant.
The team at Herbert Smith Freehills advised on UK regulatory, nuclear, and environmental matters, with the transaction being led by Energy Capital Partner’s regular counsel, Latham & Watkins. EnergySolutions Inc was advised by Skadden, Arps, Slate, Meagher & Flom.
Tyler Reeder of Energy Capital Partners commented on the growth opportunities going forward:
“We see a tremendous opportunity for the company to grow its decommissioning and disposal businesses in the United States through strategic partnerships with large engineering and construction firms, expanding its services business with governmental agencies and the rebidding of Magnox and other opportunities in Europe.”
The Herbert Smith Freehills team advising Energy Capital Partners was led by partner Louise Moore, assisted by senior associate Kevin O’Connor and associate John Buttanshaw.
Louise commented: “We are delighted to have had the opportunity to work with Energy Capital Partners and Latham & Watkins on this transaction, which marks an important private equity investment in the nuclear market. The negotiation and signing of this transaction is the result of a great team effort by all concerned.”
Under the terms of the agreement, EnergySolutions‘ shareholders will receive US$3.75 in cash for each share of common stock and the total enterprise value of the transaction is US$1.1 billion. EnergySolutions will remain a standalone business operation. EnergySolutions has until 6 February 2013 to solicit superior offers, which it indicated it would do, and the deal is subject to regulatory approval.
