Repsol is to acquire the renewable energy platform ConnectGen, which has a 20GW pipeline and development capability, for US$768m (€715 million) from Quantum Capital Group.
Through this transaction Repsol will add an onshore wind power growth platform in the US that complements the solar & storage development capabilities of Hecate Energy, in which it holds a 40% interest.
Repsol said the deal strengthens its expansion into the renewable energy industry, reinforcing its international portfolio in support of its strategic target of 20GW of installed capacity by 2030.
The ConnectGen team will join Repsol, bringing valuable expertise on the business and the US industry, and contributing to the company’s successful future growth, the company added.
Repsol already has 245MW of renewable energy assets in operation in the US and 2000MW worldwide.
Josu Jon Imaz, chief executive of Repsol, said: “This transaction is another step in our firm commitment to transforming our industry and becoming a zero net emissions company by 2050, while maintaining our profitable growth, diversification and multi-energy focus and ensuring shareholder returns.
“The addition of ConnectGen accelerates our commitment to renewable generation in one of the markets with the greatest potential for future growth.
“In that sense, bringing on board its valuable team of experts is key to ensure our successful future growth with robust profit- ability in the market.”
Wil VanLoh, founder & chief executive of Quantum added: “Quantum is committed to driving forward the energy transition by building best-in-class platforms in the renewable energy and climate tech space.
“It has been a privilege to work alongside Caton Fenz (ConnectGen CEO) and the entire ConnectGen team to build one of North America’s leading renewable energy development platforms.
“All of us at Quantum and 547 Energy are looking forward to watching Repsol convert these development projects into operating assets that will help power the American economy with clean renewable electricity over the next decade.”
The deal is expected to be closed before end of the year, subject to customary regulatory approvals.
Guggenheim Securities LLC served as financial advisor and Baker Botts LLP served as legal counsel to Repsol.
Wells Fargo Securities LLC and Nomura Securities International Inc served as financial advisors and Kirkland & Ellis LLP served as legal counsel to Quantum, 547 Energy and ConnectGen.