ReEnergy will pay around $93m or after-tax proceeds of about $81m to purchase the power stations.
Boralex president and CEO Patrick Lemaire said ReEnergy, a company that is focused on the US biomass renewable energy sector, will be the new owner of the company’s US biomass facilities.
The sale of power stations is expected to close by the end of the year.
Boralex plans to invest the proceeds in new renewable energy projects with long-term contracts in Canada and Europe, primarily in the wind, hydroelectric and solar segments.
Upon closing of the transaction, 96% of the corporation’s assets, with total installed capacity of nearly 500MW, will have such long-term contracts, Boralex said.
Under the transaction, Boralex will be entitled to continue to benefit from the sale of renewable energy certificates (RECs) relating to the power stations, receiving a 50% share on the amounts received from the sale of RECs for the vintage years 2012, 2013 and 2014 which are in excess of a defined threshold price.
