Supercharging Zenobē's Growth: A Whopping £870M Investment Fuels Aggressive Expansion Ambitions
Zenobē, a UK trailblazer in electric vehicle fleets and large-scale battery storage, just turbocharged its growth strategy. With a staggering £600 million injection from American financial juggernaut KKR and a robust £270 million equity boost from its continuing investor Infracapital, the sky's the limit.
Hold on to your hats because this isn't some run-of-the-mill investment news. These transactions are chock-full of nuance, conditioned on regulatory greenlights and the customary closing rites. Once the ink dries, KKR and Infracapital will be in the driver's seat as joint majority stakeholders. Meanwhile, existing shareholders like Jera and TEPCO Power Grid are slated to keep their seats at the table, albeit in a reduced, yet strategic, capacity.
Here's why you should care: This massive influx of capital isn't merely a symbolic nod of approval. It's a dynamic lifeline, fueling Zenobē's audacious expansion across multiple continents. Poised to scale its extensive fleet electrification and grid-anchored energy storage services, the company aims to make significant inroads in markets stretching from the UK to North America, Europe, Australia and New Zealand.
And hey, this isn't Zenobē's first rodeo. They've already been the wind beneath the wings for more than 1,000 electric buses, trucks, and other commercial vehicles around this blue planet. We're talking deployments in over 75 global depots, ranging from the cobblestone streets of Glasgow and Coventry to the sun-drenched locales of Sydney and Melbourne.
But wait, there's more! With this fresh capital, Zenobē has set its sights on deploying a jaw-dropping 4,000 electric buses, trucks, and commercial vehicles by 2026. They want to break ground on several spanking new battery storage initiatives as if that wasn't enough. So, Zenobē isn't just riding the green wave; they're looking to become its tidal force.
"Batteries are the under-recognised crucial component of our future transport and energy systems, and they're available now," said Nicholas Beatty, co-founder and director of Zenobē. "We're making huge strides in decarbonisation, but it's clear that too much renewable energy is being wasted and that transport decarbonisation must move faster. Batteries are critical to optimising the use of renewable electricity and making cheaper, greener and more secure power accessible. As fleet operators transition to electric, batteries offer a proven and available technology which, combined with software and data insights, can optimise the operators' fleet while achieving zero emissions.
"Securing substantial further equity is a significant vote of confidence in our business, its achievements and future aims. KKR provides Zenobē with a leading international strategic partner to support our expansion plans into North America, Europe, Australia and other markets. It supports our ability to raise further debt funding for these plans. It is also acknowledged that boosting battery storage and clean transport is common sense to help us reach net zero."
Alberto Signori, partner for European Infrastructure at KKR, said the deal offered "a rare opportunity to support a clear leader in transport decarbonisation and battery storage, two sectors critical in driving the transition to a net zero world".
"We believe Zenobē will continue to benefit from strong secular tailwinds, including stricter emission regulation in urban and regional areas, and the greater use of low carbon generation in the energy mix driving a need for grid balancing solutions," he said. "We see significant growth opportunities within Zenobē's existing customer base, as well as huge potential in new markets globally. We are excited to bring our operational expertise within KKR's global platform to actively support the company in continuing to further build a market-leading and climate-critical business."