KKR is partnering with the Public Sector Pension Investment Board to buy a 19.9% interest in two units of American Electric Power for $2.82 billion.

KKR and PSP Investments have agreed to acquire a minority stake in American Electric Power’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.

KKR (KKR) said Thursday it formed a 50/50 strategic partnership with Canada's PSP Investments to acquire 19.9% stakes in American Electric Power's (NASDAQ:AEP) Ohio and Indiana transmission company, as well as its Michigan transmission company,

American Electric Power Co. has agreed to sell a stake in its transmission business to a strategic partnership between KKR and PSP Investments, the energy company reported.