3i Infrastructure portfolio company Future Biogas buys remaining AD stakes for £104m

(Sharecast News) - Investment firm 3i Infrastructure said on Monday that Future Biogas has taken full ownership of a portfolio of six gastogrid anaerobic digestion plants after acquiring the remaining 49% stake from Foresight Environmental Infrastructure for £104m.

Future Biogas, one of the UK's largest AD developers and biogas producers, bought an initial 51% holding in August 2024 and has since delivered around 21% underlying earnings growth across the sites, with 3i Infrastructure saying full control would allow Future Biogas to accelerate capacity expansions, operational improvements and other identified investment opportunities.

The FTSE 250-listed firm stated the £104m price aligns with its September 2026 valuation for the assets andwill be funded initially through an equity commitment from 3i Infrastructure alongside Future Biogas's existing cash, ahead of a planned refinancing of the group's capital structure. The majority of the equity funding was expected to be returned before the end of 3i Infrastructure's financial year in March 2027.

Bernardo Sottomayor, head of European infrastructure at investment manager 3i Investments, said: "This acquisition is another important step in Future Biogas's growth. The management team has demonstrated its ability to unlock significant value by driving operational improvements. Full ownership of the plants will enable them to accelerate these plans, while simplifying the ownership structure and increasing the scale of the platform."

As of 1030 GMT, 3i shares were up 0.59% at 394.84p.

Reporting by Iain Gilbert at Sharecast.com

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