OMERS Infrastructure Management has agreed to acquire Leeward Renewable Energy LLC, a Dallas-based owner, operator and developer of wind power projects in the United States. No financial terms were released for the deal, which is expected to close in Q3 2018. The seller is ArcLight Capital Partners, which acquired Leeward in 2015. Leeward currently oversees 19 operating projects with a total installed capacity of 1.7 gigawatts. OMERS Infrastructure, the infrastructure arm of the Ontario Municipal Employees Retirement System, recently recruited Blackstone Group’s Michael Ryder as head of its Americas team.
OMERS Infrastructure Announces Agreement to Acquire Leeward Renewable Energy
DALLAS, March 22, 2018 (GLOBE NEWSWIRE) — OMERS Infrastructure Management, Inc. (“OMERS Infrastructure”), the infrastructure management arm of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada, is pleased to announce the signing of definitive documentation to acquire Leeward Renewable Energy, LLC (“Leeward” or the “Company”) from affiliates of ArcLight Capital Partners, LLC (“ArcLight”) (the “Transaction”). Leeward is a leading wind power asset owner, operator and developer of wind projects in the United States across 19 operating projects with a total installed capacity of 1.7 GW. The Transaction is expected to close in the third quarter of 2018 and remains subject to customary approvals.
“On behalf of OMERS Infrastructure, we are very pleased to announce our investment in Leeward, a high quality, core infrastructure business that we expect will generate stable and consistent returns for the OMERS pension plan. We look forward to working together with the management team at Leeward to continue the company’s growth trajectory,” said Ralph Berg, Executive Vice President & Global Head of Infrastructure, OMERS Private Markets.
“Leeward is excited to join the OMERS Infrastructure portfolio. Our team looks forward to continuing to operate our sizable portfolio safely, developing additional greenfield projects and executing on innovative re-powering initiatives to build Leeward into an industry leader for years to come,” said Greg Wolf, Leeward Chief Executive Officer.
“Since ArcLight’s acquisition of Leeward in 2015, Greg and his team have greatly improved the performance of the existing fleet and positioned the Company for growth. Upon closing of the Transaction, we believe Leeward’s partnership with OMERS Infrastructure will only enhance the Company’s role in the renewable energy future of the U.S. power markets,” said Dan Revers, ArcLight founder and managing partner.
Wells Fargo Securities, LLC is serving as exclusive financial advisor to OMERS Infrastructure, and Shearman & Sterling LLP is legal counsel. BofA Merrill Lynch acted as exclusive financial advisor to Leeward, and Latham & Watkins LLP acted as legal advisor to Leeward.
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Description of Leeward
Dallas-based Leeward Renewable Energy, LLC is a growth-oriented company formed to own, operate, develop and acquire a diversified portfolio of renewable energy assets. Leeward maintains ownership and operating interests in 19 wind farms comprising 1.7 GW across the United States. For more information about Leeward visit leewardenergy.com.
Description of OMERS Private Markets
OMERS Private Markets (OMERS Infrastructure and OMERS Private Equity) invests globally in infrastructure and private equity assets on behalf of OMERS, the defined benefit pension plan for Ontario’s municipal employees. Investments are aimed at steady returns to help deliver strong and sustainable pensions to OMERS members. OMERS Private Markets’ diversified portfolio of large-scale infrastructure assets exhibits stability and strong cash flows, in sectors including energy, transportation and government-regulated services. OMERS has employees in Toronto and other major cities across North America, the U.K., Europe, Asia and Australia. OMERS is one of Canada’s largest defined benefit pension funds with net assets of more than C$95 billion. Visit www.omersprivatemarkets.com for more information.
Description of ArcLight
ArcLight is one of the leading private equity firms focused on energy infrastructure investments. Founded in 2001, the firm helped pioneer an asset-based private equity approach to investing in the dynamic energy sector. ArcLight has invested over $19 billion in over 100 transactions since inception. Based in Boston, the firm’s investment team employs a hands-on value creation strategy that utilizes its in-house technical, operational, and commercial specialists as well as the firm’s 850-person asset management affiliate. More information about ArcLight, and a complete list of ArcLight’s portfolio companies, can be found at www.arclightcapital.com.
Photo courtesy of Leeward Renewable Energy LLC