KKR said Tuesday it has agreed to acquire an 80 percent stake in Gestamp Asetym Solar S.L. at a total enterprise value of around $1 billion. The seller is Gestamp Renewables. Gestamp Solar is a developer and operator of utility-scale photovoltaic plants. Bank of America Merrill Lynch provided financial advice to Gestamp Solar.
MADRID & LONDON–(BUSINESS WIRE)– KKR a leading global investor, has reached a definitive agreement to acquire from Gestamp Renewables an 80% stake in Gestamp Asetym Solar, S.L. (“Gestamp Solar”), a premier global solar PV developer and operator. The investment is funded by KKR Global Infrastructure Investors II, a $3.1 billion global fund.
The transaction values Gestamp Solar at a total enterprise value of around $1 billion. Both partners have committed to fully support Gestamp Solar´s ambitious strategic plan to have in operation up to 2.5GW of installed capacity by 2020.
Gestamp Solar, founded in 2005, has rapidly grown into a globally recognized player in the PV space. Today, the business is present in 18 countries and has 300 MW of PV projects in operation or in construction, with a further 2.2 GW of PV projects in development.
“We feel that this alliance between a well-established industrial group like Corporación Gestamp and a leading global investor like KKR creates a winning formula for our respective companies,” said Jon Riberas, President of Gestamp Renewables. “We are very happy to announce this transaction which provides a solid platform to ensure the continuing success of our solar business. Meanwhile, we continue to evaluate our options for Gestamp Wind.”
Jésus Olmos, Member and Head of European Infrastructure at KKR, commented, “This is an attractive time to invest in a leading owner and developer of solar PV plants. The Company has a highly experienced and entrepreneurial management team, an outstanding track record of developing and constructing its own assets, and an attractive advanced portfolio of development projects. We are excited to work with Corporación Gestamp in the further development of the Company. This investment adds to our strong belief and track record of investing in renewable energy. Gestamp Solar will be a key platform for KKR, developing utility scale solar PV on a global level and offers the opportunity to own development capabilities in solar PV complementary to our presence in operational wind and solar assets worldwide through our partnership with Acciona and KKR investments in the US and Canada.”
Marc Lipschultz, Global Head of Energy and Infrastructure at KKR said, “Gestamp is another example of how KKR can bring capital and capability to meet the vast demands for infrastructure development around the world. KKR continues to actively invest across a broad spectrum of infrastructure from energy to telecom to water to transportation to meet critical needs and public policy objectives.”
“We are delighted to count on KKR as investment partner in this exciting time of rapid growth in the renewable energies sector,” said Jorge Barredo, CEO of Gestamp Solar. “We believe that KKR is the right firm to open an exciting new chapter in Gestamp Solar’s successful history. We look forward to capturing the enormous potential of the solar PV market together.”
In this transaction, Bank of America Merrill Lynch acted as financial advisor to Gestamp Solar. The closing is expected before the end of 2015, subject to regulatory approvals, third party consents and customary closing conditions.
About Gestamp Solar
Gestamp Solar (www.gestampsolar.com) is the photovoltaic solar energy division of Gestamp Renewables, specialized in the development, construction, operation and maintenance of solar plants in USA, India, the Middle East, Japan, South Africa, South America, Italy, and Spain. It has participated in the development of over 600 MW of PV projects to date.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com.