EDP Renewables Acquires US Solar Distributed Generation Company
EDPR Acquires US Solar Distributed Generation Company and enters a new business segment
EDPR will acquire an 85% stake in C2 Omega, which holds a distributed solar generation portfolio with 89MW of operating capacity.
The investment corresponds to an enterprise value of approximately $119m and will establish EDPR’s presence in the fast-growing distributed generation segments.
EDPR, through its fully owned subsidiary EDP Renewables North America, has entered into an agreement to acquire a majority interest in C2 Omega, the distributed solar platform of C2 Energy Capital.
In detail, EDPR will acquire an 85% equity stake in a solar generation portfolio that includes 89 MW of operating and imminent completion capacity and a near-term pipeline of around 120 MW, across near 200 sites in 16 states.
EDPR’s investment in C2’s distributed solar platform business corresponds to a total enterprise value of approximately $119m for the acquisition of the operating capacity (89 MW). The transaction will also include certain earn-out payments based on the growth in future operational capacity. C2’s management team will continue to be engaged in the day-to-day operations of the business.
This transaction will allow EDPR to enter a rapidly expanding segment worldwide. The company will become an operator of one of the largest commercial and industrial distributed generation portfolios in the U.S., and will enable EDPR to serve a rapidly growing market and offer to its customers a range of new services and solutions to meet their renewable energy needs.
“The agreement reached with C2 Omega LLC is a key milestone for EDPR enabling us to enter a fast growing segment in the US through a leading provider of distributed generation. C2 Omega is a company with an impressive track record, a strong management team and a highly quality commercial and industrial portfolio. With this acquisition EDPR and C2 together will develop the distributed generation segment, broaden competitive solutions to our customers and boost the platform growth potential. Also, the deal confirms our commitment to the North America market, where EDPR has developed more than 7,600 MW and operates more than 7,200 MW of renewable energy projects” said Rui Teixeira, EDPR Interim CEO.
The completion of this transaction is subject to customary conditions precedent, and closing is expected to occur in the first quarter of 2021.