KKR has acquired half of a 1.4GW North American solar portfolio from TotalEnergies in a deal valuing the portfolio at a $1.25bn (€1.1bn) enterprise value.
TotalEnergies said it has agreed to sell the 50% stake in the solar portfolio, and expects to receive a total of $950m at closing after factoring in a bank refinancing.
TotalEnergies said it will retain a 50% stake in the assets and continue to operate them.
The portfolio consists of six utility-scale solar assets with a combined capacity of 1.3GW, and 41 distributed generation assets totalling 140MW, primarily situated in the US.
Stéphane Michel, president of gas, renewables and power at TotalEnergies, said: “We are pleased to enter into this new strategic partnership with KKR in North America, a key deregulated electricity market to expand our integrated business model.
“Aligned with our strategy, this transaction unlocks value from newly commissioned assets and further strengthens the profitability of our Integrated Power business.”
Cecilio Velasco, managing director at KKR, said: “TotalEnergies is a renewable energy industry leader globally, and we are thrilled to establish this joint venture with the TotalEnergies team to support their renewables business.
“We have long been investors in renewables through our infrastructure platform, having committed more than $23bn to date in energy-transition investments. TotalEnergies’ North American solar portfolio is a great fit for us, representing high-quality renewable energy assets with long-term contracts.”
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