SunEdison, Inc. has signed a definitive agreement to acquire 100 % of Globeleq Mesoamerica Energy (GME), a Central America's renewable energy company.
Through the acquisition, SunEdison will acquire GME's development and asset management platform: a portfolio consisting of four operating wind power plants with a capacity of 243 megawatts (MW) AC, and a solar power plant with a capacity of 82 MW DC located in Costa Rica, Honduras and Nicaragua; 80 MW AC of wind farms entering construction in Costa Rica; and a pipeline of 246 MW AC of wind under development in various countries across Central America.
All of the operational and construction assets are contracted under long term U.S. dollar-denominated power purchase agreements (PPAs) with local utilities or suppliers. Assets in Honduras and Nicaragua have been insured by the World Bank's Multilateral Insurance Guarantee Agency (through Political Risk Insurance policies).
SunEdison intends to place the wind and solar power plants acquired from GME on the operational call rights list for TerraForm Global.
The definitive agreement was signed June 12, 2015 with closing expected in the third quarter of 2015, subject to regulatory approvals, third-party consents and customary closing conditions.
Ahmad Chatila, SunEdison president and chief executive officer, stated:
"The acquisition of GME strengthens SunEdison's leadership position in the global wind energy market and significantly expands our presence in Central America, a region that offers growth opportunities for our emerging markets development platform. With this acquisition we not only gain an experienced and talented management team with a proven track record in the region, but also position ourselves to accelerate our performance and deliver attractive returns to our shareholders."
Jay Gallegos, GME chief executive officer, commented
"We're very excited to join the SunEdison team. SunEdison's world class development and global financial capabilities will enable us to aggressively grow our business. Both companies have a strong track record of partnering with local communities to stimulate strong economic development and create new jobs, so we're confident that our growth will be sustainable over the long term."
Mikael Karlsson, partner at Actis, added:
"We are proud of what we have achieved over the past five years, growing GME sixteen fold in terms of MW capacity, and creating a business that is ready to continue its journey with a strategic owner. It is uniquely positioned to capitalise on attractive growth markets in the countries where it already operates as well as expanding to others in the region."
Throughout the last two weeks we have reported on several wind & solar deals globally: