Dublin, Ireland [RenewableEnergyAccess.com] Leading renewable energy company, Airtricity announced last week that it has entered into a definitive agreement to sell its North American business unit (Airtricity North America) to E.ON AG for a purchase price equating to an enterprise value of approximately $1.4 billion and subject to closing adjustments.
The transaction is the culmination of a process commenced by Airtricity in May this year to examine strategic and financing alternatives for its North American business unit. This process resulted in significant investor interest and the Board of Directors of Airtricity has concluded that it is in the best interest of the company and its shareholders to proceed with a sale of 100% of its interests in Airtricity North America.
The proceeds of the sale of the North American business unit will support the ongoing development of Airtricity’s European business.
Airtricity North America currently operates wind farms with around 210 megawatts (MW) installed capacity with an additional 880 MW of projects expected to be operational by the end of 2008. In addition, to support long-term growth across the U.S. and Canada, the company has more than 1,000 MW of projects in an advanced development stage while more than 5,000 MW are in an early development stage.
Chairman and Chief Executive of NTR (Airtricity’s parent company), Jim Barry stated, “this transaction underscores the valuation of Airtricity’s wind assets and development pipeline. We believe that E.ON will be an excellent parent for the US business.”