Energy Capital Partners (ECP) and co-investors have agreed to acquire Atlantica Sustainable Infrastructure in a deal that values the latter at around $2.55bn.
Based in the UK, Atlantica is a sustainable infrastructure company listed on Nasdaq. It has a varied portfolio of contracted renewable energy, natural gas, storage, electric transmission, and water assets.
The company is particularly focused on renewable energy and has an operational portfolio of 2.2GW of assets located in the US, Spain, Chile, Uruguay, South Africa, and other countries.
According to the terms of the definitive agreement, shareholders of Atlantica will receive $22 per share in cash.
The consideration represents a premium of 18.9% to Atlantica’s closing share price on 22 April 2024 and a 21.8% premium to the 30-day volume weighted average trading price as of the same date.
In line with the transaction, Algonquin Power & Utilities and Liberty (AY Holdings), which collectively hold about 42.2% of Atlantica’s shares, have signed a support agreement with Energy Capital Partners.
Following the closing of the deal, Atlantica will become a privately held company and its shares will no longer be listed on any public market.
Atlantica CEO Santiago Seage said: “We expect to continue executing on our growth strategy as a private company with the support of our new partners.
“ECP has a long track record and expertise in the sustainable infrastructure sector and, together with its global co-investors, will enhance Atlantica’s ability to finance and deliver growth while maintaining our focus on safety, sustainability and value creation.”
Established in 2005, Energy Capital Partners is an equity and credit investor focusing on energy transition, electrification and decarbonisation infrastructure assets.
Its portfolio includes power generation, renewables and storage solutions, environmental infrastructure, and assets that enhance sustainability, efficiency, and reliability to support the energy transition.
Apart from the acquisition of Atlantica, Energy Capital Partners has announced the final closing of its fifth flagship equity strategy dubbed ECP V with total capital commitments of $4.4bn.
Energy Capital Partners partner Andrew Gilbert said: “Atlantica’s employees and management team have a long and impressive track record of maximising value across a complex set of global assets. ECP is excited about the opportunity to partner with the Company and to support and accelerate its growth.”
Subject to Atlantica’s shareholders’ and regulatory approvals along with other conditions, the deal is anticipated to be completed in Q4 2024 or early Q1 2025.
For Atlantica, Citi served as financial adviser while Skadden, Arps, Slate, Meagher & Flom (UK) served as legal adviser. Latham & Watkins provided legal counsel to Energy Capital Partners.
