June 16 (Renewables Now) - French green energy supplier Direct Energie has entered into exclusive negotiations to buy renewable energy developer Quadran for about EUR 303 million (USD 340m).
The transaction should close by the end of 2017, subject to customary regulatory approvals, the buyer said in a statement on Thursday.
The acquisition price includes net financial debt of around EUR 265 million at December 31, 2016 and also has an earn out of up to EUR 113 million, largely depending on the pace of commissioning of Quadran projects between now and mid-2019.
The acquisition scope is based on an overall gross installed capacity of 363 MW, managed by Quadran at the end of 2016.
Since the start of 2017, the developer has also commissioned seven new onshore wind farms, seven solar power plants and a hydro power plant in France, adding a total of 82 MW to its assets.
It now manages an installed capacity of nearly 500 MW, consisting of 47 wind farms, 16 ground-mounted solar power plants and 97 rooftop PV installations as well as 9 hydro power stations. Via its Méthanergy unit, the company operates 12 MW of bioenergy facilities, nine of which produce biogas from household waste and one methanisation unit which recycles organic matter into biogas.
Quadran plans to commission an additional capacity of nearly 450 MW, mainly in wind and photovoltaic power, for an estimated investment of EUR 530 million, increasing the installed capacity to more than 800 MW gross.
The business is expected to generate an EBITDA of more than EUR 40 million in 2017, of more than EUR 60 million in 2018, and of more than EUR 100 million in 2019.
To finance the transaction, Direct Energie has already secured a range of underwritten facilities with BNP Paribas. The company will also launch a capital increase of about EUR 100 million.
(EUR 1 = USD 1.12)