Schroders clinches deal to buy 75% of renewables investor Greencoat

British asset management giant Schroders Plc (LON:SDR) today announced an agreement to buy a 75% interest in domestic investment manager Greencoat Capital Holdings Ltd – the owner and operator of over 3 GW of renewable infrastructure assets.

Schroders will get the stake for an initial consideration of GBP 358 million (USD 473.9m/EUR 419.7m). The deal, seen to be finalised in the first half of 2022, includes a potential earn-out, payable three years after completion and capped at GBP 120 million. According to the arrangement, Schroders will have several options to take full control of Greencoat.

“The transaction is aligned with Schroders' strategy to build a comprehensive private assets platform and enhance our leadership position in sustainability,” the buyer said. It added that the target’s growth and offerings will be “significantly enhanced” thanks to the deal that will make Greencoat part of Schroders' private markets division.

Following Schroders’ purchase, Greencoat’s operations will continue to be run by the current management team of its four founders. The business will operate under the Schroders Greencoat name.

As of end-November, London-based Greencoat Capital had GBP 6.7 billion of assets under management, including wind, solar, bioenergy and heat. The company invests through several funds, the portfolio of which totals almost 200 power generation assets in the UK, Europe and the US. Among its investment vehicles are Greencoat UK Wind Plc (LON:UKW) and Greencoat Renewables Plc (LON:GRP).

(GBP 1.0 = USD 1.324/EUR 1.172)

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