PPC Renewables has entered into a binding agreement with Evryo Group, owned by funds managed by Macquarie Asset Management, to acquire their 629MW renewable energy generation portfolio in Romania.
The portfolio comprises 629MW of assets in operation, including 600MW of onshore wind projects, and about 145MW in the pipeline.
The agreement has a total enterprise value of approximately €700m with the overall valuation being in line with precedent transactions on the market, and the total consideration being subject to customary adjustments.
The acquisition further strengthens PPC Group’s growth strategy in Romania and Southeast Europe, with the addition of a significant renewables operating portfolio, including and about 145MW pipeline assets.
Upon completion of the agreement, PPC’s portfolio in operation in Romania will double and total renewable assets of PPC Group in operation will reach 5.3GW.
PPC Group has extensive experience in operating renewable energy projects with a substantial solar pipeline in Greece, the developer said.
This transaction will broaden and diversify the business’s renewable energy operations with the addition of large scale wind projects and hydro power plants in the Romanian region, it added.
The funding of the transaction is structured to be compatible with PPC Group’s financial policy, to remain well within Group’s target leverage ceiling.
Upon completion, PPC Group will add an estimated EBITDA of €100m on an annual basis.
Georgios Stassis, chairman and chief executive of PPC Group, said: “This acquisition represents a significant new step for PPC Group’s overall growth strategy in Southeast Europe.
“We accelerate the build out of renewables’ generation in Romania by doubling our portfolio of RES in operation, and most significantly with wind and hydro, further diversifying our RES mix, with assets located in the most sought-after regions in Romania, with high wind speeds.
“Our regional strategy in renewables targets to power generation across attractive markets, with a diversified technology portfolio. Southeast Europe is an increasingly interconnected market, with converging power prices and, thus, value can be created from adjacent synergies in trading, supply and risk diversification.”
Citigroup Global Markets Europe AG and Euroxx Securities SA are acting as financial advisors, and Clifford Chance as legal advisor to PPC Group in connection with the acquisition.
The closing of the acquisition is expected to occur by the fourth quarter of 2024, and will be subject to certain conditions precedent customary for this kind of transaction, including, among others, clearance from the relevant antitrust authorities.