Biffy’s owner will buy renewable energy giant Atlantica for £2 billion

Tuesday 28 May 2024 12:35

Atlantica Sustainable Infrastructure is headquartered in London.

London-based Atlantica Sustainable Infrastructure, listed on the NASDAQ US stock exchange, is to go private after accepting a takeover offer from a private equity firm that values it at $2.5 billion (£2 billion).

The renewable energy developer is to be acquired by Energy Capital Partners (ECP), which is to acquire 100 percent of its shares for $22 (£17) per share in cash.

The price is 18.9%. a premium compared to the closing price of Atlantic’s shares on April 22, 2024, i.e. the last day of trading before reports of a potential takeover of the company appeared.

Algonquin Power & Utilities Corp and Liberty (AY Holdings), BV (collectively Algonquin), which own approximately 42.2 percent of Atlantica, supported the deal.

Atlantica CEO Michael D. Woollcombe said: “This transaction is the culmination of a thorough and comprehensive strategic review process.

“After carefully reviewing all reasonably available alternatives over an extended period of time, with the assistance of outside advisors, our board of directors has unanimously concluded that this transaction represents the best value-maximizing alternative available and that consummation is in the best interest of Atlantica and its shareholders. The support of our largest shareholder confirms this conclusion.”

Atlantica returns in a rainy day before takeover

The deal comes after Atlantica reported revenue of $1 billion in 2023, up from $1.1 billion in 2022, while a pre-tax loss of $11.7 million widened to a profit of $37 .2 million dollars.

Atlantica CEO Santiago Seage added: “As a private company, we expect to continue to execute on our growth strategy with the support of our new partners.

“ECP has a long track record and expertise in the sustainable infrastructure sector and, together with its global co-investors, will enhance Atlantica’s ability to finance and deliver growth while focusing on safety, sustainability and value creation.”

Atlantica recently reported first-quarter revenue of $242.9 million for the three months ending March 31, 2024, a slight increase from $242.5 million for the same period in 2023. However, pre-tax losses increased from $15.6 million to $28 million.

Energy Capital Partners is an American investment company based in Summit, New Jersey.

In January 2023, ECP completed a £2 billion private transaction with waste management company Biffa.

Andrew Gilbert, partner at ECP, said: “Atlantic’s employees and management team have a long and impressive history of maximizing value across a complex set of global assets.

“ECP is excited to partner with the company and support and accelerate its growth.”