Voltalia announced that it is in exclusive negotiations with the shareholders of Martifer Solar to acquire the company.
The acquisition price, amounting to 9 million euros, would be entirely self-financed in cash
With this transaction, Voltalia would acquire Martifer Solar’s development, construction and operation and maintenance activities.
Apart from the usual waiver of conditions precedent, this external growth transaction is subject to the sale by Martifer Solar of its US assets, considered non-strategic.
The signing of the final agreement and the effective transaction should be closed in Q3 2016.
Martifer Solar, a global leader in a booming sector
Created ten years ago, Martifer Solar has supported the impressive growth of the solar sector. Today an industrial group with an established reputation, Martifer Solar develops, builds and operates solar PV plants for third-party clients all over the world:
Since its creation, Martifer Solar has developed projects representing a total of 757MW, all sold to investors. At year-end 2015 its portfolio of projects in development includes 1,343MW.
The projects are intended to be sold to third-parties, but Martifer Solar can also be in charge of their construction and operation according to investors’ needs;
Martifer Solar also builds solar farms for its clients, with 599MW of solar PV power plants commissioned over the past ten years and 85MW currently in construction;
Operation and maintenance (O&M) for third-party clients is a fast growing business for Martifer Solar: as of today, the company operates 585MW. In FY2015, Martifer Solar registered 142.2 million euros of revenues and 2.1 million euros of EBITDA.
A business with low capital content, based on expertise already mastered by Voltalia Just like Voltalia, Martifer Solar develops, builds and operates renewable power plants.
However, Martifer Solar has positioned itself as a service provider: its business model is therefore complementary to Voltalia’s. Martifer Solar does indeed not own any of the power plants, which are held, thus financed, by third-party clients.
As a result, Martifer Solar’s activity has a low capital content, compared to electricity production, Voltalia’s core business.
An opportunity to take a major leap forward to create a global renewable champion
Teaming up with Martifer Solar would enable Voltalia to speed up the diversification of both its
international footprint and its energy mix.
While solar energy is the fastest growing renewable energy in the world, this transaction aims at building up the share of solar in Voltalia’s business portfolio.
Covering four continents (Europe, Africa, Asia and Latin America), with a 265 people team spread worldwide, Martifer Solar also offers Voltalia the possibility to diversify its energy mix.
Significant value-creation ahead
Holding a significant portfolio of operating power plants exceeding 1GW as soon as 2016, the new Group can immediately benefit from economies of scale, particularly on procurement.
In addition, combining Voltalia’s recognized know-how in wind energy and Martifer Solar’s expertise as a service provider, the management of the two companies has already identified relevant synergies such as the introduction of a new offer for the operation and maintenance of wind power plants for third-party clients.
A common vision and a project supported by both teams Preliminary works for the merger have confirmed the cultural fit between the two companies.
Martifer Solar CEO and founder Henrique Rodrigues said: "Martifer Solar’s teams and myself are eager to join Voltalia.
"In ten years we managed to turn Martifer Solar into a global player in the solar industry. We will continue fuelling this entrepreneurial spirit we have in common with Voltalia".
Voltalia CEO Sébastien Clerc said: "Once merged, our two companies form an international group integrated throughout the renewable energy value chain with a double positioning as renewable power producer and as service provider for third-party clients."