Portuguese power company Energias de Portugal, S.A. (EDP.LS) has agreed to acquire Horizon Wind Energy LLC from The Goldman Sachs Group, Inc. (GS.N) for $2.15 billion. The transaction is expected to close in June.
Horizon has about $180 million in debt. The acquisition will be adjusted for investments, which are estimated at $600 million, EDP said.
The purchase would be financed by $2.5 billion in debt and a tax credit worth $400 million, with an enterprise value for Horizon of $2.9 billion.
EDP, which is Portugal’s largest industrial company, said the purchase gives it a foothold in the U.S. as concerns about global warming increase demand for renewable energy.
By adding Horizon, EDP hopes to generate more than half its electricity from renewable energy by the end of the decade.
The merger will result in a new global renewables player, with more than 3,800 megawatts (MW) of wind power generation in operation by the end of 2007.
Founded in 1999, Horizon owns 600 MW of operating wind projects and has 997 MW of projects due to begin operating this year. Horizon also has a projects in various stages of development in 15 states in the U.S., with combined capacity of over 9,000 MW.
Goldman also owns four wind energy projects and an investment in a wind turbine manufacturer. The firm also has earmarked $1.5 billion for investments in renewable energy, and has taken stakes in Iogen, SunEdison, First Solar, Suntech Power and US Geothermal.
Loading...