Innergex Renewable Energy has announced the completion of the previously disclosed acquisition of Alterra Power by way of an arrangement agreement pursuant to which Innergex acquired all of the issued and outstanding common shares of Alterra for an aggregate consideration of $1.1 billion, including the assumption of Alterra’s debt.
Innergex’s acquisition of Alterra is its largest to date, and adds 485 MW (gross 1,049 MW) of renewable energy assets, in operation and under construction, to Innergex’s portfolio, bringing the corporation’s total capacity to 1,609 MW (gross 2,896 MW). By 2020, Innergex’s net installed capacity is expected to reach over 2,000 MW from a well-diversified resource mix of hydro, wind, solar and geothermal projects in Canada, the U.S., France, and Iceland. The acquisition also brings Innergex an extensive pipeline of prospective projects in preliminary stages or in progress, with an estimated net capacity of more than 5,000 MW.
“Our acquisition of Alterra is about accelerating our growth and taking Innergex to the next level,” said Michel Letellier, President and Chief Executive Officer of Innergex. “We are one of the largest independent renewable energy producers in Canada, with a market cap of more than $1.8 billion, a strong balance sheet, a more diversified asset base, and a sizeable project pipeline that places us on a substantial growth trajectory.”
“This transaction gives us a stronger platform for solid, long-term growth in the United States, the world’s second largest growth market for renewables. By combining the Innergex and Alterra teams, and leveraging Alterra’s U.S. development expertise, we can significantly expand our presence in the U.S. market as well as Canada, Latin America, and Europe,” said Letellier. “It’s another significant step forward in Innergex’s international expansion, which should be beneficial for our shareholders.”
Concurrently with the closing of the acquisition, Innergex has completed the financing of the cash portion of the transaction. La Caisse, one of its main shareholders, provided Innergex with a $150 million subordinated unsecured 5-year term loan at a competitive interest rate.
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