Delivering long-term value for a 200m euro cogeneration deal

A specialist investment firm, exclusively focused on sustainability, recently acquired the entire cogeneration portfolio of a Spanish utility company. Included in the deal were 12 plants across Spain – 10 running on natural gas and 2 running on oil – with a total installed capacity of more than 300MW. As part of the acquisition, the firm commissioned Enzen’s Transaction Advisory team to assess all 12 plants, validate the operating risks and make recommendations for improvement.

As complex installations using sophisticated technology, such plants require proper technical expertise to evaluate their performance properly. Enzen’s team fulfilled this requirement through an exhaustive technical due diligence exercise. The solution included:

• a projection of the assets' useful life and maintenance status
• a projection of yearly production forecasts
• a review of operations and maintenance contracts
• potential improvements to the long-term service agreements in place
• an assessment of asset health
• the validation of balance sheets, profit, loss and costs
• financial modelling.

The Enzen team drew on its vast combined experience of such deals to analyse the different plants and produce a high-quality report in exceptionally quick time, delivered with passion, enthusiasm and a human touch that was appreciated by the customer.

Thanks to Enzen’s expert advice, the customer was able to make an informed bid for the transaction. Enzen identified several improvement opportunities in asset operations, flagged up key risks to the transaction, and made recommendations on how best to mitigate them to ensure the long-term efficiency, sustainability and value of the twelve plants.