In March 2017, funds managed by Dalmore Capital, as part of the Quad Gas consortium, acquired an interest in National Grid Gas Distribution (NGGD) subsequently renamed Cadent. Cadent is the largest distributor of gas in the UK, owning four regulated gas distribution networks covering the East of England, North London, the North West and the West Midlands.
The gas distribution networks are well established, predictable and strong cash yielding businesses which deliver gas from the national transmission network to business and residential users.
The Quad Gas consortium has acquired an initial stake of 61%. Acquisition of a further 39% interest in the networks has been agreed by the consortium and National Grid subject to exercise of put and call options.