US investor snares Viridian

Infrastructure investment manager I Squared Capital has agreed to acquire Irish energy company Viridian Group Holdings, which includes wind developer Energia, from Arcapita.

The deal will see ISQ Global Infrastructure Fund acquire 100% of Viridian in an all-cash transaction, which is expected to complete during the second quarter of 2016.

I Squared Capital will also pay down approximately £145m in existing junior debt with new equity at closing.

Viridian, which also includes Power NI, has 225MW of onshore wind assets in operation and construction, as well as 747MW of gas-fired generation.

It also has 793MW of operating wind-farms under long-term contracts, which is expected to increase to about 1GW in just over a year as other wind-farms, currently under construction and in-development, become operational.

The group, which employs over 480 staff, also has a 20% share of domestic electricity sales volume and an approximately 27% share of business electricity sales volume on an all-Ireland basis.

I Squared Capital partner Gautam Bhandari said: “Viridian has an attractive mix of diversified businesses with significant overlap with our areas of expertise.

“We intend to grow Viridian with the leadership team to achieve its full potential.

“The acquisition of Viridian is consistent with our strategy of investing in robust growth economies, such as Ireland, and within those economies selecting companies with stable cash flows and a potential to grow the business organically and through bolt-on acquisitions.”

Viridian chief executive officer Ian Thom said: “We are excited by the opportunity to work with I Squared Capital, which brings a proven track record of successfully operating and helping to expand businesses such as Viridian.

“In addition, the group’s increased financial strength will enable us to capitalise on the many growth opportunities in our markets, which will benefit our employees and our customers.”

Image: Energia’s Hollyford wind farm (Energia)