Boralex is to acquire the outstanding minority interests in three wind farms in the Canadian province of Quebec totalling 296MW.
The company has entered into an agreement to buy Caisse de depot et placement du Quebec’s 49% stakes in the 136MW Des Moulins 1, 21MW Des Moulins 2 and 139MW Le Plateau 1.
Boralex already owns the remaining interests in the projects.
The transaction is priced at C$121.5m in cash payable at closing, and an additional amount of up to C$4m after closing, subject to the settlement of certain conditions that need to be met.
All the projects feature Enercon turbines, with Des Moulins 1 utilising 59 E-82 machines, Des Moulins 2 nine E-92 units and Le Plateau 60 of the E-70 model.
Both Des Moulins projects are covered by an existing power purchase agreement that expires in December 2033, while Le Plateau has a PPA that expires in March 2032.
The PPAs are with Hydro-Québec Distribution.
Boralex president and chief executive Patrick Lemaire said: “We’re very pleased to announce our acquisition of CDPQ’s stake in high-quality wind farms that we already own 51% of and have managed for over two years following our acquisition of Invenergy’s stakes in these assets.
“Operating these wind farms provided the expected synergies and has yielded results 10% better than we had expected in 2019.”
Boralex chief operating officer Patrick Decostre said: “This transaction strengthens our position in the wind industry in Canada and is perfectly aligned with the growth orientation of our strategic plan.
“Acquiring CDPQ’s stake will add significant cash flow for the coming years and a positive contribution to the company’s discretionary cash flow per share in the first year after the transaction closes.
“We also expect to generate additional operational and financial synergies in the coming years.”
Closing is expected to take place at the end of November 2020, subject to standard closing conditions.
Following the transaction, Boralex’s installed capacity will be 2212MW.