Mainstream Renewable Power has signed an agreement with Aker Horizons, owned by Aker, which will take a 75% equity stake in the company.
The deal values Mainstream at €1bn, including a potential earn-out of up to €100m in 2023.
The agreement “paves the way” for a “rapid acceleration” of Mainstream’s global expansion plans to bring 5.5GW of wind and solar assets to financial close by 2023.
Aker Horizons CEO Kristian Rokke said Mainstream’s role as a “pioneer in renewables and its strong entrepreneurial culture” is a good fit for Aker.
He said: “Through the acquisition of Mainstream, Aker Horizons will gain a platform to drive forward its plans in renewable energy and position itself in a growing market for hybrid projects.”
Mainstream, founded by Eddie O’Connor (pictured) in 2008, has “significant interests” across Latin America, Asia-Pacific and Africa, as well as in the global offshore wind sector, with over 1.2GW of major capital projects currently under construction.
Mainstream has a market presence in Chile, Africa, and Vietnam, as well as assets in development in other countries including the Philippines, Australia, and Colombia.
The company will remain focused on delivering its 10 GW global development pipeline and growing its portfolio in existing as well as new markets, with the full backing of the Aker ASA group.
Under the terms of the deal, the company will continue to operate as Mainstream, led by its CEO Mary Quaney and supported by its established and experienced leadership team.
O’Connor will remain as chairman, retaining a significant minority interest in the business and all existing shareholders will have the opportunity to reinvest alongside him ahead of a planned initial public offering of Mainstream within the next two to three years.
Quaney said: “We are delighted to have such a highly respected business as Aker Horizons on board, enabling Mainstream to materially accelerate its growth plans to deliver a global portfolio of wind and solar assets.
“We plan to bring 5.5GW of renewable assets to financial close globally by 2023, which sets us firmly on track to becoming one of the world’s first pure-play renewable energy majors.”
O’Connor said the deal means Mainstream can widen its scope for entry into new markets and “further deepen and expand” its leadership position in existing ones, such as in Chile, where it will soon be supplying the equivalent of one in seven Chilean homes with power from Mainstream wind and solar plants.
“Critically, Aker Horizons shares our vision, mission and values, making it the right partner for Mainstream.
“Together with such an exceptional partner we will strengthen our position as a leader in the global energy transition during this critical decade,” O’Connor added.