Offshore wind developer, Ørsted, has entered into an agreement with I Squared Capital and management shareholders to acquire a 100% equity interest in Lincoln Clean Energy LLC (LCE) for an enterprise valuation of $580 million. LCE is a U.S.-based developer, owner, and operator of wind farms.
“The U.S. is a leading market in renewable energy generation,” said Ole Kjems Sørensen, EVP at Ørsted and Head of Partnerships, M&A & Asset Management. “With the acquisition of LCE, we acquire an attractive portfolio with a good mix of operating and development capacity. We have been impressed with the skills and ambition of the LCE team and we believe I Squared Capital has supported the business well in bringing it to its current market position.”
Since I Squared Capital acquired a 90% stake in the company in 2015, with the management team owning the remaining 10%, LCE has developed and built over 500 MW of operating capacity, is constructing another 300 MW onshore wind project, and has a pipeline of more than 1.5 GW expected to be completed by 2022.
In February 2018, Ørsted announced plans to invest in other renewable energy technologies to reinforce its position in the renewables’ industry.
“I have long admired Ørsted for their leadership in offshore wind power,” said Declan Flanagan, founder and CEO of LCE. “The team and I at LCE look forward to replicating that leadership in onshore wind in the U.S. I also want to thank I Squared Capital for their deep financial and operating expertise and commitment to LCE during what has been a period of rapid and successful growth.”
LCE’s existing management team will continue to run the business, which will be a separate unit outside of Ørsted’s Wind Power business. The transaction is subject to approval by the U.S. competition authorities and is expected to close prior to the end of 2018.