Melbourne-based energy retailer Flow Power has announced a change of ownership with one of Canada’s largest pension funds OPTrust acquiring a 51 per cent stake in the company.
Operationally the company will continue to function as usual, with the leadership team and existing Australian shareholders remaining the same.
OPTrust’s Sydney-based Managing Director, Stan Kolenc, will join the Flow Power Board.
Flow Power will expand its Melbourne office, as well as looking at establishing a presence in Sydney, Adelaide and Brisbane.
This will create approximately 50 jobs across Australia over the next 12 months, and also allow for the expansion of Flow Power’s existing project scope.
The investment also includes Flow Power’s sister company – Utilacor.
Flow Power recently became the first electricity retailer to bring corporate renewable power purchase agreements to Australia – a model proven to be successful in the US and Europe – as well as participating in a number of programs to increase cost-effective demand response capacity in Australia.
OPTrust has invested more than $500 million in Australia across private equity and infrastructure assets.
“We were drawn to Flow Power as a first mover in an industry that is well suited to a company as innovative as Flow Power,” Mr Kolenc said.
“Flow Power’s IP and technology hold real promise, and we are excited about the opportunity to grow the company.
“Australia is a key market for us, and has seen significant growth in recent years. Carefully selecting the right investments is our key priority, as we are looking to back more ethical, innovative and profitable companies like Flow Power.”
Managing Director of Flow Power, Matthew van der Linden, said, “We are delighted to have the backing of such a respected player as OPTrust. We look forward to the opportunities it willenable Flow Power to provide for customers as we continue our momentum in transforming the Australia power market.”