Atlantic Power to acquire renewables developer Ridgeline Energy
Nov 16, 2012 - North American power producer Atlantic Power Corp (NYSE:AT, TSE:ATP) today said it would pay some USD 88 million (EUR 69m) to acquire US wind and solar developer Ridgeline Energy Holdings Inc.
Atlantic Power has reached a deal on the acquisition with French waste and water treatment group Veolia Environnement SA (EPA:VIE). Ridgeline is a wholly-owned unit of European renewables developer Eolfi SA, which is majority owned by Veolia.
Through the transaction, Atlantic Power will acquire stakes totalling 150 MW in three wind projects and a 1,000 MW development pipeline of over 20 solar and wind projects in the US. The acquisition will lift Atlantic Power's stake in the 80-MW Rockland wind farm from 30% to a 50% managing member interest, give it 12.5% holding in Ridgeline's 125-MW Goshen North project, as well as 100% of the 120-MW Meadow Creek scheme. All projects are located in Idaho. The former two are in operation, while Meadow Creek is scheduled to go online in December 2012.
Atlantic Power will also take over Ridgeline's 30-strong team, which the power group's president and chief executive, Barry Welch said would bring experience in renewable project acquisition, development, construction and asset management. "The Ridgeline acquisition strengthens our ability to execute development stage projects which is one of our target growth areas. It also complements our other growth area, operating project acquisitions, as exemplified by the Capital Power Income LP transaction completed a year ago," Welch said.
Atlantic Power is to fund the cost of the purchase, which is subject to working capital adjustments, through its planned convertible debt issue. The acquisition, subject to regulatory approvals, is expected to be completed on or before December 31. Closing is also contingent on the company securing financing and the Meadow Creek project meeting commercial operating milestones.