KKR and PSP Investments have agreed to acquire a minority stake in American Electric Power (AEP)’s Ohio and Indiana and Michigan transmission companies for $2.82 billion.

Founded in 1906, AEP is a US-based electric utility that serves customers across 11 states.

“We are thrilled to strategically partner with the best-in-class leader in transmission in the U.S., and are impressed with AEP’s deep operational capabilities, highly experienced leadership team, and its history of innovation,” said Kathleen Lawler, managing director of KKR in a statement. “KKR’s infrastructure business has a long track record of investing behind the energy transition and electrification opportunities, and this investment in AEP sits squarely at the intersection of these two trends. The simplicity and stability of the assets, coupled with the robust demand for electricity, make AEP’s transmission assets an ideal investment for KKR.”