SunEdison and the renewables firm TerraForm Power are buying First Wind for $2.4bn.
Out of the total estimated cost of $2.4 billion, $1.9bn is the upfront and a $510m is on earn-out.
SunEdison will acquire around 1.6GW of pipeline and backlog projects, which have been added to TerraForm Power’s call right project list.
Once the acquisition completed, the project is expected to be operational in 2016 and 2017.
An additional 6.4GW of project development opportunities are also included in the deal.
The acquisition of First Wind converts SunEdison and TerraForm Power into expanded renewable energy companies and will make SunEdison the leading renewable power plant developer in the world, said, Ahmad Chatila, president, CEO, SunEdison.
This acquisition is accretive and establishes TerraForm Power as a leading asset owner in the wind energy market while demonstrating the company’s commitment to delivering on TerraForm Power’s diversified growth strategy, noted, Carlos Domenech, president and CEO, TerraForm.
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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, stated, Paul Gaynor, CEO, First Wind.
SunEdison plans to speed up the project development and realize growth opportunities by integrating First Wind’s wind platform into its own global project development.
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TerraForm attains 521MW of contracted wind generation assets from First Wind, adding 1.6GW to its list of call right projects scheduled for drop down in 2016 and 2017.
TerraForm’s call right project list with SunEdison will double to 3.2GW of solar and wind projects.
Through this acquisition, generation capacity of TerraForm’s operating portfolio will increase by more than 50 percent.
As part of the deal, Emera is selling its 49 percent interest in Northeast Wind Partners II to First Wind for $223.3m. First Wind already holds 51 percent of Northeast Wind.
Both transactions will be closed in the first quarter of 2015, subject to regulatory approvals.
Sabeena Wahid
[email protected]