March 26 (Renewables Now) - Italian energy company ERG SpA (BIT:ERG) said on Monday it has agreed to buy a French company that owns six wind farms in northern France with a combined capacity of 52 MW.
Through its subsidiary ERG Eolienne France SAS, the Italian group will acquire Les Moulins de Frouges SAS from Zurich-based Profond Finanzgesellschaft AG, paying EUR 52.2 million (USD 59m). The target entity is the owner of six operational wind parks in the Hauts-de-France region, which were put on stream between 2007 and 2009.
Les Moulins de Frouges’ wind portfolio generated earnings before interest tax, depreciation and amortisation (EBITDA) of EUR 6.2 million in 2018, while their total output is estimated at 99 GWh. All plants operate under a 15-year feed-in-tariff (FiT) and in 2018 received an average of EUR 93 per MWh.
ERG expects the deal to be completed in the second quarter, after receiving clearance by the French Ministry of Economy and Finance. Following the acquisition, it will own 360 MW of installed capacity in France.
(EUR 1.0 = USD 1.131)