KKR to buy EUR-417m stake in Acciona’s renewables ops

Jun 24, 2014 - US investment group KKR & Co LP (NYSE:KKR) will buy one-third of the 2.3-GW international renewable energy generation business of Acciona Energia for some EUR 417 million (USD 567m).

As part of its collaboration with the energy unit of Spanish construction and engineering company Acciona SA (BME:ANA), KKR will also help finance the future growth of Acciona Energia International’s (AEI) portfolio, the parties said in a joint statement today.

The goal of the partnership is to develop one of largest operating international renewable energy portfolios worldwide. An international listing through a YieldCo vehicle is also in the plans. The terms of the deal envisage an earn-out sum of up to EUR 50 million, to be provided based on the outcome of the potential initial public offering (IPO).

The parties noted that KKR’s investment would be one of the world’s largest financial transactions in the renewable energy sector to date as it gives AEI an enterprise value of EUR 2.6 billion, half of which corresponds to net debt.

The targeted firm will hold Acciona Energia’s 2.3 GW in operating renewables capacity outside of Spain, mainly wind farms plus some photovoltaic and concentrated solar power (CSP) assets. These plants are located in 14 countries including the US, Mexico, Australia, Italy, Portugal and South Africa. They are projected to generate EUR 120 million in cash flow to the partners.

Acciona Energia will be operating the AEI assets for a period of 20 years.

KKR’s investment is seen to be completed by the end of the year.

(EUR 1.0 = USD 1.360)

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