TotalEnergies is acquiring European renewable energy platform VSB from Partners Group for €1.57bn and has also agreed to sell 50% of its 2GW solar and battery energy storage system portfolio in the US to Apollo-managed funds in an $800m (€763m) deal.
Germany-based VSB operates in France, Poland, Italy, Croatia and Finland and covers the entire renewable energy value chain, from development to operation, and provides services such as technical and commercial management for third-party assets, along with e-mobility solutions.
Partners Group acquired a majority stake in VSB in 2020 and has since more than doubled its project pipeline from 8GW to over 18GW.
The deal with Apollo involves a portfolio of three solar projects in Texas with a total capacity of 1.7GW, and two battery storage projects with a capacity of 300MW.
TotalEnergies said it will keep a 50% stake and continue to operate the assets, comprising Danish Fields, Cottonwood and Hill Solar I.
The US transaction will provide $800m in cash to TotalEnergies, comprising $550m in equity from Apollo and $250m from shareholder loan refinancing, it said.
Stéphane Michel, president of gas, renewables and power at TotalEnergies, said: “In line with our strategy, these transactions will enable us to optimise our capital allocation in renewables and contributes to improve the profitability of our Integrated power business.”
Michel said VSB’s competencies and assets will contribute to the “development of our integrated power strategy” in Europe, and notably in Germany.
“Finally, we are looking forward to joining forces with Apollo as a partner in our renewable assets in Texas”, added Michel.
David Daum, partner and head of infrastructure Europe at Partners Group, said: “Through our deep research capabilities, we identified VSB as uniquely positioned to benefit from decarbonisation tailwinds in Europe, tracking the Company long before investing.
“We then transformed VSB from a developer into a full-service renewable energy platform and independent power producer. Having completed our value creation plan, we believe now is the right time to exit.”
Maximilian Christ, member of management for infrastructure Europe at Partners Group, said: “VSB has significantly increased its project development output and operating asset base under Partners Group’s ownership.
“As part of our value creation plan, we implemented operational excellence initiatives around VSB’s project development and back-office functions and invested in technology and the digitisation of processes. VSB has very strong foundations from which to continue its growth journey.”
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