Co-owners seek exit from MPC Kinetic

MPC Kinetic provides services for wind farms, solar farms and LNG upstream services.

Six years after trying its hand at floating on the Australian Securities Exchange, private equity owners of MPC Kinetic are trying to stage an exit, and investment bank Macquarie Capital is on board to offer assistance.

MPC Kinetic is a construction and renewable energy development business, and it is understood to have been quietly offered around the market to prospective buyers.

So far it is understood to be catching the attention of groups out of Asia.

The company as a whole is understood to be worth about $500m, and the two owners are understood to be keen to divest at least a stake.

MPC Kinetic is owned by US-based private equity firm SCF Partners and Perth-based private equity firm Viburnum Funds.

Viburnum Funds bought into the business in 2017 – and with SCF it also owns Contract Resources, which has been for sale through MA Moelis after being first acquired in 2019.

MPC Kinetic provides services for wind farms, solar farms and LNG upstream services.

It describes itself as a market leader when it comes to the installation of large-scale LNG and renewable energy networks for the world’s leading utility and energy companies.

Clients include companies such as Shell, Origin Energy, Santos, Arrow Energy, Beach Energy, Chevron, Senex, Westside and OMV.

The company was formed in June 2017 following the merger of MPC Group and Kinetic and, when it tried to list, Credit Suisse and UBS were on board as joint lead managers.

After repricing, it was slated to list with a $408.9m market value.

Bringing in a new investor would help the business with further growth opportunities in the vastly expanding renewable energy space, and so far it’s construction groups out of countries such as Japan which are showing interest.

When it was considering a listing, the valuation range discussed was between 6.8 and 8.1 times earnings before interest, tax, depreciation and amortisation – although that was in 2018.