Renewable

May 18 (Renewables Now) - UK thermal and renewable power generator ContourGlobal plc (LON:GLO) has struck an all-cash deal to be acquired by US private equity firm KKR & Co (NYSE:KKR) for GBP 1.75 billion (USD 2.17bn/EUR 2.07bn).

KKR, which secured the deal through its newly-formed company Cretaceous Bidco, is offering to pay GBP 2.363 in cash for each ContourGlobal share, a 36% premium on the closing price of its stock on May 16.

ContourGlobal will recommend the offer to its shareholders, KKR said in a London bourse filing.

The London-listed generation company was founded in 2005 by CEO Joseph Brandt and Reservoir Capital Group. Since then, it grew to operate around 6.3 GW of power plants located in 20 countries. Of the total ContourGlobal’s capacity, renewables – wind, solar PV and CSP and hydro – make up some 1.8 GW. Among the largest assets is the 438-MW Chapada wind farm complex in Brazil.

Looking back, Brandt said:

“What started in a single small office with three people in New York has grown 17 years later into a global, high-growth power generation company operating 138 power plants in twenty countries. Together we have built an over USD 6 billion enterprise, and I am very proud that we have grown extraordinarily well and honoured the commitments we made to investors when we listed the company in November 2017.”

"ContourGlobal is a highly diversified global energy platform operating in an industry undergoing a transformational shift. We believe that private ownership would enable ContourGlobal to invest in the business at greater scale and with more flexibility, including accelerating investments in energy transition to reach the stated net zero commitments," added Vincent Policard, Partner and Co-Head of European Infrastructure at KKR.

(GBP 1.0 = USD 1.242/EUR 1.181)

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