January 21, 2021
Mergers and Acquisitions
Marathon Capital is pleased to announce that RWE Renewables GmbH (“RWE”), one of the world’s leading renewable energy companies, has sold a 24% stake in four RWE onshore wind farms located in south Texas to funds managed by Greencoat, a UK-based, leading global renewables investment manager with over USD 8 billion of assets under management. The agreed purchase price of approximately USD 160 million corresponds to an enterprise value of around USD 300 million (for the 24% stake), which translates to an implied enterprise value multiple of USD 1.4 million/MW.
This transaction follows the December 14, 2020 announcement stating RWE had sold a 51% stake to a subsidiary of Algonquin Power & Utilities Corp. The division of ownership is as follows: 51% Algonquin, 25% RWE, and 24% Greencoat.
Marathon Capital acted as the exclusive financial advisor to RWE on the Algonquin and Greencoat transactions.
The four wind farms have a total installed capacity of 861 MW. Stella Wind Farm (201 MW) was commissioned in December 2018 and Cranell Wind Farm (220 MW) in September 2020, followed by East Raymond Wind Farm (200 MW) in December. West Raymond Wind Farm (240 MW) is currently under construction and expected to be commissioned in the first quarter of 2021.
Greencoat managed funds hold shares in certain RWE UK projects, namely in the offshore wind farms Humber Gateway and Rhyl Flats as well as in the onshore wind farms Little Cheyne Court, Lindhurst and Middlemoor.
RWE will continue to operate all four wind farms following the transaction close.
