Europe’s largest producer of renewable energy Statkraft has signed an agreement to acquire the solar pioneer Solarcentury that will see it gain access to a 6GW pipeline.
The £117.7m deal covers projects planned in Europe and South America that combined with Statkraft’s current project portfolio immediately positions the company as a leading developer in the European solar market.
Solarcentury’s project pipeline spans many high-growth markets including Spain, the Netherlands, the UK, France, Greece, Italy and Chile.
The transaction is an acquisition of 100% of the shares in Solarcentury Holdings and its subsidiaries.
The main shareholders were previously Scottish Equity Partners, VantagePoint Capital Partners, Zouk Capital, and Grupo Ecos.
Statkraft has a target to develop at least 8GW of wind and solar by 2025 and said Solarcentury’s geographical footprint is well aligned with Statkraft’s existing development portfolio and market operations.
It added that as a global leader in energy market operations, Statkraft is uniquely positioned to add value to the acquired project pipeline through its market integration capabilities.
Statkraft chief executive Christian Rynning-Tonnesen said: “This acquisition is in line with our strategy to ramp up as a wind and solar developer and become one of the leading renewable energy companies globally.
“Just like hydropower and solar power complement each other, Statkraft and Solarcentury are an excellent fit in terms of purpose and people. Joining forces will accelerate our growth and continue to drive the energy transition forward.”
Solarcentury chief executive Frans van den Heuvel said: “Solarcentury has grown entirely organically since 2007 into a highly profitable business.
“To continue to grow at the pace that is possible given the market we’re operating in, we will benefit from a larger balance sheet and this has resulted in us seeking new ownership.
“Statkraft is the perfect match for us given their ambition to invest in and grow their solar portfolio.”
Solarcentury is headquartered in London and has around 180 people across 12 countries.
Since the company changed their strategic approach in 2013 it has developed 40 utility-scale projects totalling around 1.2GW across seven countries.
The transaction is conditional upon customary regulatory and local competition approvals and is expected to be completed by the end of 2020.