Gestamp Solar, a global developer and operator of solar photovoltaic plants, has changed its name to X-ELIO following the completion of KKR’s acquisition of an 80% stake in the company following all regulatory approvals, third party consents and customary closing conditions.
The investment has been funded by KKR Global Infrastructure Investors II, a US$3.1 billion global fund.
The transaction values Gestamp Solar at a total enterprise value of around US$1 billion. Both partners have committed to fully support Gestamp Solar´s ambitious strategic plan to have in operation up to 2.5 GW of installed capacity by 2020.
Gestamp Solar is a Spanish firm founded in 2005. The comapny has rapidly grown into a globally recognized player in the PV space. Today, the business is present in 18 countries and has 300 MW of PV projects in operation or in construction, with a further 2.2 GW of PV projects in development.
In the transaction, Bank of America Merrill Lynch acted as financial advisor to Gestamp Solar. The closing is expected before the end of 2015, subject to regulatory approvals, third party consents and customary closing conditions.
Chief Executive Officer Jorge Barredo, said:
“X-ELIO combines all the elements that are needed to capture the dramatic increase in demand for solar energy: capital resources to invest in the long term, an entrepreneurial mindset, technology leadership and the ability to scale the business. The new name celebrates our heritage and reflects X-ELIO’s enormous growth potential with its etymological cornerstones of Ex (meaning ‘out of’ and ‘from’) and Helios (the god who is the personification of the sun in Greek mythology.)”
Jesús Olmos, Member and Global Co-Head of Infrastructure at KKR, added:
“The combination of X-ELIO’s technological expertise and KKR’s financial firepower combines capability and capital and has created a new utility player that will shape and support the revolution that is underway in the world’s energy market. The Paris climate agreement from December 2015 also highlights that X-ELIO is part of the drive to solve one of the world’s biggest challenges: how to reduce greenhouse gas emissions. This investment adds to our strong belief and track record of investing in renewable energy.”