Voltalia negotiates EUR-9m acquisition of Martifer Solar

French renewable power plants operator Voltalia SA (EPA:VLTS) said it is holding exclusive talks to buy the solar business of Portuguese construction company Martifer SGPS SA (ELI:MAR) for about EUR 9 million (USD 10.2m) in cash.

The potential acquisition of Martifer Solar would speed up the diversification of both the international footprint and energy mix of Voltalia, and also add a complementary business given that the target has positioned itself as a service provider. Voltalia plans to make use of that service business and introduce a new offer for the operation and maintenance (O&M) of wind farms for third-party clients, it added.

Since its inception 10 years ago, Martifer Solar has developed and sold 757 MW of photovoltaic (PV) projects. At the end of 2015 its portfolio included assets with a combined capacity of about 1,343 MW. The company is also engaged in the construction of solar plants, having commissioned 599 MW over the past 10 years. It is currently building 85 MW of PV parks.

The part of its business that is considered complementary to Voltalia’s activities is the operation and maintenance of assets. As of June 20, Martifer Solar operates 585 MW. Voltalia noted that since the target does not own any of the power plants, it has a low capital content compared to the French company’s core electricity production business.

In fiscal 2015, Martifer Solar generated revenues of some EUR 142.2 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 2.1 million.

The transaction being negotiated is subject to Martifer Solar selling its US assets, which are viewed as non-strategic, Voltalia said. It is expected to be completed during the third quarter of the year.

“Martifer Solar’s teams and myself are eager to join Voltalia,” Henrique Rodrigues, CEO and founder of Martifer Solar, said in a statement.

(EUR 1.0 = USD 1.134)

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