ConnectGen is a renewable development company, with a development pipeline that includes 20,000MW of onshore wind, solar and energy storage projects at different levels of maturity across the attractive energy regions in the US
Repsol headquarters in Madrid, Spain. (Credit: Luis García/Wikipedia)
Spanish energy company Repsol is set to enter the US onshore wind energy market, through the acquisition of Texas-based ConnectGen for a total consideration of $768m.
Repsol signed the acquisition agreement with 547 Energy, a renewable energy development platform owned by Texas-based private equity firm Quantum Capital Group.
ConnectGen is a renewable development company, with a multi-technology approach and complete in-house development capabilities.
Its development pipeline includes 20,000MW of onshore wind, solar and energy storage projects at different levels of maturity across the attractive energy regions in the US.
The transaction is expected to be completed by the end of this year, subject to certain customary closing conditions, including regulatory approvals.
In connection with the acquisition, ConnectGen employees, including senior management, will be transitioned to the Repsol Renewables team.
Quantum founder and CEO Wil VanLoh said: “Quantum is committed to driving forward the energy transition by building best-in-class platforms in the renewable energy and climate tech space.
“It has been a privilege to work alongside Caton Fenz (ConnectGen CEO) and the entire ConnectGen team to build one of North America’s leading renewable energy development platforms.
“All of us at Quantum and 547 Energy are looking forward to watching Repsol convert these development projects into operating assets that will help power the American economy with clean renewable electricity over the next decade.”
Repsol said that the transaction will strengthen its position in the renewable energy business.
ConnectGen’s pipeline would support its entry into the US onshore wind industry, one of the world’s largest markets with the highest growth potential.
The transaction will enhance its global footprint and contribute to its goal of achieving 20,000MW of installed renewable generation capacity by 2030, said the Spanish company.
Guggenheim Securities served as financial advisor and Baker Botts as legal counsel to Repsol, on the transaction.
Wells Fargo Securities and Nomura Securities International served as financial advisors and Kirkland & Ellis as legal counsel to Quantum, 547 Energy and ConnectGen.
Repsol CEO Josu Jon Imaz said: “This transaction is another step in our firm commitment to transforming our industry and becoming a zero net emissions company by 2050, while maintaining our profitable growth, diversification and multi-energy focus and ensuring shareholder returns.
“The addition of ConnectGen accelerates our commitment to renewable generation in one of the markets with the greatest potential for future growth. In that sense, bringing on board its valuable team of experts is key to ensure our successful future growth with robust profitability in the market.”