Thursday, 17 May 2012

Top 10 Transactions in Renewable Energy in 2011

ERSA Energias Renovaveis SA

CPFL Energia S.A. and ERSA – Energias Renováveis S.A. to merge and create a new company under the CPFL name

  • Largest renewable energy deal in 2011
  • Technologies include wind farms, small hydro power plants, and biomass thermoelectric power plants
  • CPFL Energia S.A will own 63.6% of the new company, while the remaining share of 36.4% is owned by ERSA, resulting in joint assets totalling R$ 4.5 billion in equity value
  • Joint assets will combine to generate 1,034 MW of power operating and under construction

Landis + Gyr AG

Toshiba Corp. of Japan (Acquirer) buys 100% of the shares of Landis + Gyr AG (Target) for $2.3B

  • Purpose of acquisition is to help Toshiba to become the leader in the Smart Community business by 2020
  • Assets include Landis + Gyr AG’s:
  • “leading-edge smart metering” system
  • 8,000 global utility customers
  • Post merger, Landis + Gyr AG will continue to operate as a stand alone subsidiary

EDF Energies Nouvelles SA (EEN)

Electicite de France SA (Acquirer) acquires the 50% of what it does not own in EDF Energies Nouvelle SA (Target) for $2.08B

  • Energies include solar and wind projects
  • Diversifies the Acquirer away from large exposure to nuclear
  • Acquirer plans to grow existing businesses (mostly nuclear) organically take a priority over additional acquisitions of renewable companies
  • By the end of 2012, EDF is targeting:
  • 500 MW of solar power; and
  • 4,200 MW of wind power

True Green Energy Group

Universal Resources Development Incorporated (Acquirer) buys a 25.5% stake in True Green Energy Group (Target) for 1.25B euros.

  • The terms of the agreement also ensure that the Target’s vision is continued, by providing clean energy to the Philippines, while cleaning the garbage and building satellite cities for Philipino citizens
  • Target’s CEO explained that “TGEG will build 500,000 homes in the Philippines in addition to working with the government to accumulate all landfill and garbage dump sites in order to create clean green energy power plants that will reduce pollution while reusing the waste to create clean green energy.”

SunPower Corp.

Total SA (Acquirer) from France buys 60% of SunPower Corp. (Target) for $1.37B
  • SunPower is the second-largest US solar panel maker
  • Total acquisition will give SunPower competitive advantage for increasingly competitive Chinese manufacturers who are getting support from their government
  • May see rise in acquisition of renewable energy by oil companies who are looking to diversify their energy portfolios
  • As crude prices continue to surge, demand will shift towards the renewable energy sector
  • Acquisition offer represents a 46% premium over the closing price prior to the announcement.

Televent GIT SA

Schneider Electric (Acquirer) buys 100% of shares of Televent (Target) for $1.36B.

  • Televent is a global IT company that helps improve efficiency, safety, and security of IT systems for companies the produce a sustainable world
  • Schneider Electric is the global leader in energy management
  • Announced shortly after the acquisition the launching of SmartCity, giving cities access to offerings for more efficient and sustainable infrastructure

Enbridge Acquisitions

Enbridge Income Fund (Acquirer) buys 100% interest in a portfolio of wind and solar energy assets for $1.23B

Targets include:
  • 190 MW Enbridge Ontario Wind Project
  • 99 MW Talbot Wind Project and;
  • 80 MW Sarnia Solar Project, the largest photovoltaic solar facility that is operating in the world

Windfarm (400MW) – Anholt

PensionDanmark and PKA (Acquirer) purchase 50% of the 400 megawatt Anholt offshore wind farm (Target) for $1.13B from DONG Energy

  • Could be the largest sale of an offshore wind farm in the industry, according to Anders Eldrup, CEO of DONG Energy
  • Project not yet operating, but DONG Energy has committed to the construction of the project for an agreed upon price and date, or could face a fine by the Danish government
  • Siemens Wind to supply 111 wind turbines generating 3.6 MW each for 400MW of energy

Windfarms (443MW) - Castilla y Leon province Spain

A consortium of fund managers led by Bridgepoint (Acquirer) purchases 11 wind farms from ACS for $880M
  • Consolidated capacity of all wind farms is 443 MW
  • Josu Arlaban, former CFO of Acciona, to be chief executive of portfolio
  • Arlaban notes that their goal is to achieve greater efficiency within the projects on a larger scale

Hansen Transmissions International Nv

ZF Friedrichshafen AG (Acquirer) will acquire the 26% remaining portion of Hansen Transmissions International (Target) for $190M, or a full valuation of $731M

  • Hansen is listed on the London Stock Exchange and manufactures wind turbines and industrial gearboxes since 1923