Redexis Gas
Country: Spain
Investors: GS Infrastructure Partners II and co-investors
Redexis Gas, the second largest transmitter and fourth largest distributor of gas in Spain, provides customers with access to an affordable and secure source of energy. The company operates in regions with gas penetration below the Spanish and European averages (est. 28% and 46%, respectively).
Affiliates of two GS Infrastructure Partners II funds and certain co-investors acquired Redexis Gas in 2010 from Endesa, S.A., Spain’s largest electric utility company. With GS Infrastructure Partners’ support and a new management team, the company has made significant investments in Spanish natural gas infrastructure over the past five years. Since 2010, Redexis Gas has almost doubled its transmission and distribution network to c. 8,700 km and tripled the municipalities served to over 550, with gas now available in areas with over five million inhabitants.
Fernando Bergasa
Executive President - Redexis Gas
The close involvement of GS Infrastructure Partners with Redexis Gas in the past five years has been key to developing Redexis Gas into a leading independent gas network company with a growth rate substantially higher than its peers
>600k
gas connection points
85
additional employees since 2010
What did the business need?
A new strategy for a standalone company and a growth plan to increase natural gas penetration
A focus on improving investment efficiency
A stable funding base with long-term investors supportive of the company’s new strategic vision
How did private equity backing create lasting value?
Provided support in hiring a management team with strong experience in the sector
Encouraged a long-term development plan and accretive capital expenditure
Helped strengthen best-in-class commercial, operating and HSSE processes
Assisted Redexis in establishing a long-term capital structure with two bond issues and an EIB loan
Provided further capital for acquisitions
What outcomes did private equity investment achieve?
Invested more than €700m to expand transmission and distribution networks
Almost doubled the length of the network and tripled the number of municipalities served
Significantly outperformed the sector in growth of connection points
Increased social impact: the company now generates over 290 direct and 2,000 indirect jobs
Developed award-winning technology (eg Redexis Gas won the ComputerWorld 2015 Award)
Investors
