SunEdison, Inc. (NYSE: SUNE) and TerraForm Power, Inc. (Nasdaq: TERP) have announced the signing of a USD $2.4 billion agreement to acquire First Wind, one of the USA’s leading developers, owners and operators of wind farms.
SunEdison says it will purchase over 1.6 GW of First Wind pipeline and backlog projects for Terraform Power, which are expected to be operational in 2016-2017. Also included in the transaction is an additional 6.4 GW of project development opportunities.
SunEdison’s portion of the total transaction is $1.5 billion, with Terraform Power acquiring First Wind’s operating portfolio for an enterprise value of $862 million. TerraForm Power is a yieldco* that is majority owned by SunEdison.
“The acquisition of First Wind transforms both SunEdison and TerraForm Power into diversified renewable energy companies and will make SunEdison the leading renewable power plant developer in the world,” said Ahmad Chatila, President and Chief Executive Officer of SunEdison.
First Wind is understandably quite chuffed about the acquisition as well.
“We are excited to become part of the SunEdison team,” said Paul Gaynor, Chief Executive Officer of First Wind. “This new strategic organization will allow us to join with SunEdison to develop and invest in new, long-term-contracted, well-sited and well-run renewable energy projects that deliver clean energy to homes and businesses across the country and internationally.”
Announcements of major milestones, projects, deals and technology advancements from SunEdison have rapidly flowed in 2014. Just since the beginning of October this year, SunEdison has announced:
- new polysilicon technology.
- zero white space solar panels.
- its Renewable Operations Center portfolio surpassing 3 gigawatts.
- a joint venture in China.
- several major solar projects in California.
- signing of an MoU to develop 5GW of solar projects in India.
- the closing of $130 million in financing for one of the largest solar power plants in Latin America.
- awarded 150 megawatts of solar projects in Karnataka India .
- completed 3 more school installations in California.
- a partnership to develop up to 300 megawatts of utility scale solar in the Philippines.
SunEdison has solar installations, manufacturing plants, and 39 offices located throughout North America, Europe and Asia
* A yieldco is a publicly traded company formed to own operating assets that produce a predictable cash flow.
Source: SunEdison
