Sempra Sells 45% Stake in Infrastructure Arm to KKR and CPP Investments in $10B Deal
Sempra has agreed to sell a 45% equity stake in Sempra Infrastructure Partners to affiliates of KKR and Canada Pension Plan Investment Board (CPP Investments) for $10 billion, valuing the energy infrastructure platform at an equity value of $22.2 billion and an enterprise value of $31.7 billion.
The deal, which will see Sempra receive 47% of proceeds at closing, 41% by year-end 2027, and the balance roughly seven years after closing, will shift majority control of Sempra Infrastructure Partners to a KKR-led consortium with a 65% stake. Sempra will retain a 25% equity interest, while Abu Dhabi Investment Authority (ADIA) maintains its existing 10% holding.
Alongside the sale, Sempra Infrastructure Partners announced a final investment decision on Port Arthur LNG Phase 2, a landmark development in Texas. Backed by a consortium of investors including Blackstone Credit & Insurance, KKR, Apollo-managed funds, and Goldman Sachs Alternatives, the project secured $7 billion for a 49.9% minority equity stake, with Sempra retaining majority ownership at 50.1%. The project will be executed by Bechtel Energy Inc., which will provide engineering, construction, and project management services.
Sempra CEO Jeff Martin framed the transactions as a key step in simplifying the business and funding regulated utility growth in Texas and California, while strengthening balance sheet flexibility. “The transaction announced today underscores our commitment to extend our strategic partnership with KKR, with whom we have a shared vision of improving America’s position as a global leader in LNG exports,” Martin said.
BofA Securities is serving as financial advisor to Sempra on the referenced Sempra Infrastructure Partners equity sale transaction, while Sullivan & Cromwell LLP is serving as legal advisor to Sempra on both transactions described herein.
Citi is serving as financial advisor and Simpson Thacher is serving as legal advisor to KKR. Kirkland & Ellis LLP is serving as legal advisor to CPP Investments.
For the Port Arthur Phase 2 project, Goldman Sachs & Co. LLC acted as exclusive Structuring Agent for Sempra Infrastructure Partners. Sullivan & Cromwell LLP and Baker Botts LLP served as legal counsel to Sempra Infrastructure Partners.