Global Infrastructure Partners’ (GIP) third fund is buying the US renewable energy platform of the listed energy firm NRG Energy for $1.38bn (€1.12bn).
The acquisition by Global Infrastructure Partners III, includes NRG’s controlling stake and 46% economic interest in NRG Yield (NYLD), as well as NRG’s renewable energy operations and maintenance and development (O&M) businesses.
GIP is acquiring the business for cash, subject to certain adjustments. The transaction is expected to close in the second half of 2018.
GIP also said it has agreed to provide backstop support for NYLD’s agreed purchase of the Carlsbad Energy Center project.
Adebayo Ogunlesi, chairman and managing partner of GIP, said: “We view each of the three acquired businesses – the NYLD stake, the O&M business, and the development business – as highly complementary and well positioned to capitalise on the increasing market demand for low-cost, clean energy.
“We are also excited about the opportunity to grow the value of NYLD, which allows public market investors to access attractive investments in renewable energy.”
Christopher Sotos, president and chief executive officer of NYLD, said: “With today’s announcement, NYLD can look forward to its next phase of growth, including solidifying near-term objectives through the most recent drop-down transactions and, most importantly, aligning with GIP, whose strategy and breadth of global investment capabilities are well suited to our business model and long-term objectives.”