Macquarie Asset Management will acquire France-based Reden Solar from InfraVia Capital Partners and Eurazeo for $2.7 billion, in a consortium with British Columbia Investment Management Corp (BCI) and Germany-based investment firm MEAG. The deal is expected to be closed in Q3 2022. Citigroup and Nomura advised Reden Solar's owners on the sale.
Reden Solar is focussed on France and Spain, and has lately expanded into Greece and Italy. The company now has 762 MW of operating solar power, with a goal of increasing it to 1 GW by 2022. The business has a 15 GW development pipeline, with 1.3 GW and 850 MW under construction in Spain and Mexico, respectively, as of July 2021. The most recent financials published on Reden Solar's website show full year revenues of $238.7 million and EBITDA of $113.9 million for 2020.
Pre-acquisition ownership of Reden is split between InfraVia (53%) and Eurazeo (47%). Eurazeo would receive $690 million in cash from the stake sale, reflecting a cash-on-cash multiple of 4.3 and an IRR of ~42%. According to a recent media report, Reden Solar began the sales process in October 2021, with TotalEnergies and Macquarie emerging as the frontrunners in the bidding process.
As per Enerdatics data, the EBITDA multiple for the transaction is consistent with that noticed for the recent $912 million acquisition of Boralex by another PE firm, Energy Infrastructure Partners. Both transactions have an EBITDA multiple of ~20.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.