Asset manager Brookfield and Canadian pension fund manager La Caisse have teamed up to acquire renewable energy firm Boralex for C$3.8bn (€2.4bn).
The deal involves Brookfield and its institutional partners, including Brookfield Renewable Partners, acquiring a 70% stake alongside existing shareholder La Caisse doubling its stake in the TSX-listed renewables firm to 30%.
The investors have agreed to take TSX-listed Boralex private in an all-cash deal worth C$37.25 per share, an offer that represents a 36.4% premium over the stock’s average price in the month leading up to the announcement.
The deal values the company’s equity at C$3.8bn. Including debt, the total enterprise value is $9bn, which increases to C$9.7bn once Boralex’s project and corporate-level indebtedness are both included.
Boralex has 3.8GW of wind, solar, hydro and battery energy storage assets, with more than 90% contracted for an average term of 10 years, diversified across Canada, France, the US and the UK. The firm is also advancing a portfolio of projects under construction with a total expected build of 300MW, alongside 750MW of secured projects.
Jehangir Vevaina, global CIO of Brookfield Energy Group, said: “We are excited to partner with La Caisse to accelerate the delivery of Boralex’s development pipeline in its next phase of growth.
“Combining Brookfield’s customer and supply chain partnerships, long-term capital and deep operational know-how in renewables, with the strong foundation built by Boralex will help grow our presence in Canada and other attractive energy markets.”
Kim Thomassin, EVP and head of Québec at La Caisse, said: “We have supported Boralex since 2017 as a shareholder and lender. This transaction reflects our strong confidence in this renewable energy leader that is deeply rooted in Québec and well positioned to pursue growth across North America and internationally.
“We look forward to partnering with Brookfield on Boralex’s next chapter – an opportunity that aligns with our commitment to the energy transition and our determination to help build Québec-based champions that create lasting value at home and abroad.”
Patrick Decostre, president and CEO of Boralex: ”This transaction brings in the right long-term partners for Boralex as we enter an accelerated growth phase requiring significant capital deployment and financial flexibility.
“On top of its financial capacity, Brookfield, alongside La Caisse, brings complementary expertise to Boralex’s skillset and will enable us to benefit from significant economies of scale and opportunities, particularly in procurement, energy commercialisation to large corporations and sharing of best practices within their different platforms.”
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