Innergex Renewable Energy Inc. and Alterra Power Corp. have announced that they have entered into an arrangement agreement pursuant to which Innergex will acquire all of the issued and outstanding common shares of Alterra for an aggregate consideration of $1.1 billion, including the assumption of Alterra’s debt.
“This transaction is highly strategic and accretive for Innergex as we believe it significantly accelerates Innergex’s growth profile with a path to reach a net installed capacity of over 2,000 MW by 2020,” said Michel Letellier, president and chief executive officer of Innergex. “The geographic and energy sources profile of Alterra’s portfolio further diversifies Innergex’s asset base by adding operating hydro and wind projects in Canada, a large number of operating, under construction and prospective wind projects in the U.S. and operating geothermal assets in Iceland.”
“This is an excellent transaction for Alterra shareholders,” said Ross Beaty, executive chairman of Alterra. “It offers a significant premium and the opportunity for Alterra shareholders to remain exposed to Alterra’s assets, including our growth pipeline. Innergex is an outstanding Canadian clean energy company with highly complementary renewable energy assets to those of Alterra and a similar corporate culture.”
Alterra will complement Innergex’s current operating, under construction, and prospective projects, resulting in increased geographic and technological diversification through meaningful presence in the United States and Icelandic power markets as well as the addition of geothermal power generation to Innergex’s production mix. The company believes that the transaction significantly accelerates Innergex’s growth profile:
- Innergex’s overall net power generation capacity will be of 1,606 MW, up over 40 per cent, pro forma the transaction, including assets under construction;
- Addition of three advanced-stage prospective projects with capacity of net 686 MW;
- A number of other prospective U.S. renewable electricity production tax credit qualified projects totalling approximately 490 MW; and
- Extensive pipeline of prospective projects in preliminary stages or in progress estimated at a net capacity of 4,350 MW to be added to Innergex’s pipeline of net capacity of approximately net 3,560 MW.
Alterra’s and Innergex’s experienced management teams, with a track record of successfully developing and operating renewable energy projects in various jurisdictions, will play an important role in developing the large growth pipeline of the combined company.