Simpson Thacher represented global investment firm KKR and the Public Sector Pension Investment Board (“PSP Investments”), one of Canada’s largest pension investors, in an agreement to acquire a 19.9% interest in American Electric Power’s (“AEP”) Ohio and Indiana & Michigan transmission companies for $2.82 billion. KKR and PSP Investments have formed a 50/50 strategic partnership to pursue the acquisition. KKR is making this investment through its core infrastructure strategy.
AEP is a fully regulated electric utility that serves 5.6 million retail and wholesale customers across 11 states. Ohio, Indiana and Michigan are among AEP’s fastest-growing service territories driven primarily by the strong American manufacturing industry and newer sources of load growth. The investment by KKR and PSP Investments in these two transmission companies will support AEP’s previously announced five-year capital plan to benefit customers.
The Simpson Thacher team included Breen Haire, Shamus Crosby, Mark Kunzman, Aaron King, Andrew Kingsbury, Gavin Jaco, Craig Wickham and Kaitlyn Greening (M&A); Brian Steinhardt and Brandon Barton (Banking & Credit); Nancy Mehlman, Lina Pan and Michael Stephenson (Tax); David Rubinsky, Miles Jasper and Alisa Tschorke (ECEB); Lori Lesser and Christina Breitbeil (IP); Dennis Loiacono (Real Estate); Peter Guryan and Jamie Logie (Antitrust).