Infracapital Partners II, Infracapital's latest infrastructure investment fund, has entered into an agreement to acquire the Swedish utility company Falbygdens Energi AB (FEAB), a 100% owned subsidiary of Göteborg Energi AB.

The business operations comprise mainly of the production and distribution of district heating and the distribution of electricity in the area. The electricity distribution network comprises 522 kilometres of overhead lines and 1,690 kilometres of underground cables.

Ed Clarke, Director and Co-Founder of Infracapital, said:

We are extremely pleased to announce the acquisition of Falbygdens Energi, our first investment in Sweden. Falbygdens Energi is an attractive addition to the Infracapital Partners II portfolio and, as a long-term and experienced investor in infrastructure, we believe we can assist management to develop and enhance the business for its customers and other stakeholders.

The transaction, which is part of the utility's policy to achieve a clearer strategic focus on core operations in Gothenburg, is expected to close in December 2013.

Infracapital is a leading European infrastructure investor and part of the British and European asset management arm of Prudential plc. Infracapital makes equity investments in critical infrastructure and has GBP 1.7 billion of funds under management.