US market: innogy acquires onshore wind pipeline of more than two gigawatts
>Contract with Terra Firma Capital Partners signed
>innogy to become sole owner of EverPower’s wind onshore development business
>Acquisition fits innogy’s strategic growth plan for the US
>Transaction intended to be closed in the second quarter of 2018
>Local development team based in Pittsburgh to join innogy
innogy SE is advancing its renewables expansion strategy for the US market: The Germany-based energy company innogy and the UK private equity investor, Terra Firma Capital Partners, have signed an agreement to acquire all of the shares in EverPower Wind Holdings’ US onshore wind development business. The acquisition is subject to approval by the US government’s Committee on Foreign Investment in the United States (CFIUS) with estimated closing of the transaction in the second quarter of 2018. All parties have agreed to maintain confidentiality regarding the purchase price.
The US market is one of our key strategic growth areas for renewables. Establishing our subsidiary, Innogy Renewables US LLC, in 2016 was our first step to enter this market. The acquisition of EverPower’s impressive pipeline is a logical step consistent with our commitment. We are very pleased to have made our first acquisition in the US. And this is just the beginning.
With this acquisition, innogy will become the sole owner of more than two gigawatts of onshore wind projects in various development stages located in attractive US power markets for renewables. This portfolio will serve as a strong foundation for innogy’s long-term growth in the US.
This acquisition is a unique opportunity to combine the portfolio strength of more than 20 projects across seven states (Ohio, Pennsylvania, Montana, New York, Wyoming, Maryland, Maine) with innogy’s technical experience, and financial strength to fuel growth in the US with the continued support of the Pittsburgh based core team, who will join the innogy family. The project pipeline includes more than 500 MW in advanced stages of development targeted to become operational by 2020 thanks to the hard work of the EverPower team, the backing of Terra Firma, and the assistance of innogy by Marathon Capital, LLC in this transaction.
Execution of the pipeline will be realised gradually. innogy will commercially assess every project under the hurdle rate framework. innogy will review all options regarding the ownership and financing structure to maximise value for the company and shareholders and implement the growth in line with innogy's targets regarding leverage and financial stability.
innogy has considerable experience in developing, designing, financing, constructing and operating renewables assets both independently, and together with project partners and investors. In addition to onshore wind innogy is also investigating project opportunities for offshore wind and solar in the US, and plans to enter other markets for renewable-based electricity generation such as Canada.
This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialisation of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.