The U.K.-based infrastructure unit of Kuwait's sovereign wealth fund agreed to buy oil and gas pipeline company North Sea Midstream Partners Ltd., or NSMP, from private equity firm ArcLight Capital Partners LLC.
Kuwait Investment Authority's Wren House Infrastructure Management will acquire ArcLight's entire stake in the company. Terms of the transaction were not disclosed, but two sources told Reuters that Wren House was paying about £1.3 billion.
The infrastructure investment manager was bidding against JP Morgan, Blackstone and private equity firm KKR, but Wren House offered the best terms, the sources reportedly said.
The transaction is expected to close this year.
BofA Merrill Lynch was the exclusive financial adviser to ArcLight, and Freshfields Bruckhaus Deringer LLP acted as counsel. Jefferies and Macquarie Capital were the financial advisers to Wren House, and Slaughter and May acted as its legal adviser.