Arjun and Fengate acquire ONroute from Kilmer and Autogrill

Arjun Infrastructure Partners (AIP) and Fengate Asset Management (Fengate) have officially announced the closing of ONroute Services Centres (ONroute) operated by Host Kilmer Service Centres, from KD Infrastructure L.P., an affiliate of Kilmer Group, and a Canadian subsidiary of HMSHost Corporation, a subsidiary of Autogrill (Milan: AGL IM).

The transaction closed on May 26, 2019 with consent from the Province of Ontario.

Financial terms of the transaction were not disclosed. However, HMSHost disclosed that it received CDN $255 million from the sale of interests (51%, 49%, 49%) in three partnerships jointly held with KD Infrastructure, and 100% of the concession assets at three travel centres.

In 2010, HMSHost and Kilmer were awarded, through a Public-Private-Partnership with Infrastructure Ontario, under a 50-year concession agreement to design, build and operate 23 ONroute service centres along Ontario’s 400 series highways. The partnership has a first right of opportunity to develop commercial service centres with direct access to all non‐tolled 400 series highways in Ontario.

photo credit: ONroute

News Release

Arjun Infrastructure Partners and Fengate acquire ONroute Services Centres

TORONTO, June 13, 2019 (GLOBE NEWSWIRE) — Arjun Infrastructure Partners (AIP) and Fengate Asset Management (Fengate) are pleased to announce that the firms have acquired ONroute Services Centres (ONroute).

ONroute operates a chain of 23 service plazas and rest areas with prime locations along major highways in Ontario, Canada. Operational for over seven years, ONroute currently serves more than 40 million customers per year and operates under a 50-year concession agreement with the Province of Ontario. ONroute has the exclusive right to operate commercial service centres with direct access to highways 400 and 401 and has a first right of opportunity to develop commercial service centres with direct access to all non‐tolled 400 series highways in Ontario.

“ONroute offers a unique opportunity for our investors to capitalise on AIP’s experience of the Motorway Service Areas (MSA) sector, developed through our management of Welcome Break, the second largest MSA operator in the United Kingdom,” commented Surinder Toor, Managing Partner, AIP.

“AIP intends to continue building ONroute’s strong offering for the benefit of the Province’s population and AIP is pleased to be joining forces with Fengate, who have extensive experience of managing critical social infrastructure in North America and particularly in Ontario,” said Charles Hazelwood, Partner, AIP.

“ONroute is a unique, high-quality transportation infrastructure investment in Ontario that will deliver long-term, stable cash flows to our investors. We are very impressed with the quality of ONroute’s people, infrastructure, locations and operations, and this acquisition is an excellent fit with our investment strategy,” said Andrew Cogan, Managing Director, Infrastructure Investments, Fengate. “Furthermore, we are pleased to partner with the talented and experienced AIP team.”

The sellers are KD Infrastructure L.P. and a Canadian subsidiary of HMSHost Corporation, along with certain of their affiliates. Financial close for the transaction was achieved May 26, 2019 with consent from the Province of Ontario.

Evercore Inc. acted as financial advisor and Blake, Cassels & Graydon LLP acted as Canadian legal advisor to AIP and Fengate, with White & Case LLP providing supplemental legal advice to AIP.

About AIP
Arjun Infrastructure Partners (AIP) is an independent infrastructure investor and asset manager with circa Cad 3.5 billion of capital under management across 13 investments. Founded in 2015, AIP offers an innovative alliance framework to provide like-minded investors with flexible and tailored access to direct infrastructure investments.

AIP’s team has extensive operational and financial experience in regulated utilities, energy and renewables, and transportation. Members have previously held senior roles at J.P. Morgan Asset Management, Macquarie, Dong Energy, Scotia Gas, Thames Water, Vattenfall, AEP, and Wales & West Utilities. www.aip-am.co.uk

About Fengate
Fengate is a leading alternative investment manager focused on infrastructure, private equity and real estate strategies. With offices in Toronto, Houston, New York, Vancouver and Oakville, Fengate is one of the most active real asset investors in North America and the firm has been investing in infrastructure across North America since 2006. We have worked hard to earn our reputation as a trusted and innovative developer and proven investor, and to establish strong market relationships. Learn more at www.fengate.com

Media Contact

Arjun Infrastructure Partners
François Bornens
Partner, Business Development
francois.bornens@aip-am.co.uk
Mob: +44 (0)799 0560 377

Fengate Asset Management
Amy Holmes
Vice President, Marketing and Communications
amy.holmes@fengate.com
0: +1 905 491 2619 C: +1 647 297 5369

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.