US solar and storage developer Borrego has entered into a definitive agreement to spin off and sell its development business to investor ECF.
The deal includes Borrego’s project pipeline, consisting of more than 8400MW of solar and 6400MW of energy storage.
Upon the completion of the transaction, ECP will operate the development business as an independent company.
The business will be headquartered in Lowell, Massachusetts, and will be led by the current development team to continue to execute on the long-term business strategy in partnership with ECP.
Dan Berwick, who is president of Borrego’s development business, will become CEO.
ECP partner Andrew Gilbert said: “Borrego’s development business owns a best-in-class track record and project pipeline.
“We are thrilled to be partnering with Dan and team to help continue the company’s tremendous growth and success.
“At ECP, we believe the opportunity set in sustainable infrastructure is expanding rapidly as the world continues to advance electrification as a means to decarbonise.
“We’re excited to join forces with Borrego’s development business to create ECP’s eleventh renewable platform and fourth standalone solar platform.”
Borrego will continue to invest in its engineering, procurement and construction (EPC) and operations and maintenance (O&M) business units.
Borrego EPC is a national builder of utility-scale and community-scale solar and energy storage projects with more than 450MW of solar projects and 200MW of energy storage projects in design or construction.
The company manages the performance of 1.4GW and over a thousand operating solar assets, the majority of which were built by other EPCs.
Borrego CEO Mike Ball said: “We are seeing tremendous opportunities in Borrego’s EPC and O&M services. This sale ensures we can invest in our people and build the technology that will position them to capitalise on what will be a record-breaking decade for solar and storage deployment in the United States.
“I am thankful for the incredible development team that I’ve had the pleasure of working with for the last 12 years.
“We are thrilled that we were able to find a partner with ECP’s industry experience, financial resources and reputation.
“I am confident that together they will accomplish great things and continue Borrego’s mission to accelerate the adoption of renewable energy.”
JP Morgan Securities acted as exclusive financial advisor to Borrego in connection with the transaction.