Renewable Energy M&A: A Closer Look at Innergex's $234mn French Transaction

Innergex divested a 30% interest in its French wind assets, which includes 324 MW of operational wind, a 9 MW storage system, and a 397 MW development pipeline, to Credit Agricole at an enterprise value (EV) of approximately $234mn. Just nine months prior, Innergex purchased a 30.45% interest in these operational assets from Desjardins Group for $148mn.

Enerdatics has allocated the deal's EV between the operational assets and the under-development pipeline. If operational assets are assumed to be sold at their previous acquisition value, the sale price for the 119 MW (net) pipeline in development is about $86mn or $0.7/MW. This valuation appears high for a development pipeline, suggesting a possible premium was paid on the operational assets. Enerdatics has provided a chart illustrating the EV/MW for the power capacities across both stages to clarify the valuation spectrum.

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.

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