Alternative asset and private equity investor KKR announced the acquisition of a 25% stake in Enilive, the mobility transformation and biofuels-focused business of Italian energy company Eni, for €2.94 billion (USD$3.2 billion), valuing the unit at $12.8 billion.

Eni launched the Enilive brand in 2023, with the goal of offering integrated services and products that are progressively decarbonized by 2050, converging the company’s mobility activities, including its biorefining and biomethane assets, and smart mobility solutions, as well as the distribution of mobility energy carriers through its more than 5,000 Enilive Stations in Europe. Eni has announced plans for Enilive to more than double its biorefining capacity from 2023 to 2026 to more than 3 million tons, and to reach more than 5 million tons per year by 2030.

According to Eni, the transaction will bring together its ability to develop high growth energy businesses, and KKR’s investment expertise in the energy and infrastructure sectors, to enable the growth of the business. The agreement also forms part of Eni’s “satellite model strategy” to attract capital from partners to fund growth and highlight the value creation of its new businesses, while preserving free cash flow from traditional businesses for shareholder distribution.

Eni CEO Claudio Descalzi said:

“We believe that the right path to successfully address the transition entails the creation of low or zero-carbon businesses that respond to a real and existing demand for energy products and that grow independently thanks to the success of their business models and products. With KKR’s support, Enilive is poised to capitalize on its ambitious growth plans and continue delivering real, scalable energy transition solutions.”

KKR is making the investment through its Global Infrastructure Strategy. The acquisition marks the latest in a series of energy transition and sustainable infrastructure-focused transactions for KKR, and follows the identification by the firm in December 2023 of decarbonization, and the large scale “brown-to-green” transition of asset-heavy sectors in particular, as a key “mega-theme” driving investment opportunities.

Alberto Signori, Partner in KKR’s European Infrastructure team, said:

“We are thrilled to strategically partner with Eni on this investment in Enilive, a key player in advancing the energy transition. This aligns with our strategy to support transformative energy projects across Europe. With our global infrastructure platform and local expertise, we’re excited to help Enilive scale its impact in decarbonizing transportation and expand internationally. We look forward to contributing to its continued growth and success.”