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Under the agreement, KKR will invest in ACCIONA Energía International (AEI), the international renewable energy generation business of ACCIONA Energía, the Spanish multinational's energy division. KKR is making the investment from its global infrastructure fund.
KKR is acquiring a one-third stake in AEI at a price of €417m and will help to fund future growth of the renewables portfolio. ACCIONA Energía will retain the remaining two-thirds of AEI.
AEI will hold ACCIONA Energía's operating renewable assets outside
The investment gives an implied enterprise value to AEI of €2.6bn, including €1.3bn in equity and €1.3bn in net debt, making this one the world's largest financial transactions in the renewable energy sector to date.
ACCIONA Energía will operate AEI's assets for 20 years under a management agreement. ACCIONA Energía will also give AEI a Right of First Offer on future renewable energy projects it develops within AEI's operational territory. ACCIONA Energía has a strong pipeline that can be accelerated through this partnership.
The agreement is expected to be closed before the end of the year.
The intention of both partners is to promote an international IPO through a YieldCo vehicle that will hold all or part of the assets of AEI. The agreement includes an earn-out consideration of an additional purchase price up to €50m based on the outcome of YieldCo's public offering.
Jesús Olmos, Head of KKR Infrastructure in
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
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ACCIONA is one of Spain's leading corporations and operates in infrastructure, renewable energy, water and services, in more than 30 countries. Its corporate motto —"Pioneers in development and sustainability"—mirrors its commitment to contribute to economic growth, social progress and care for the environment across all its activities. This commitment is recognized by ACCIONA's inclusion in the Dow Jones (DJSI) and FTSE4Good sustainability indexes. ACCIONA is listed on the Madrid Stock Exchange's Ibex-35 blue chip index. It has a workforce of more than 34,000 professionals and posted €6.6 billion in revenues in 2013. www.acciona.com
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