New name reflects unique strategy to capture projected growth of
solar photovoltaic market
The new financial resources will help X-ELIO to expand operations
in markets including Japan, Latin America and the U.S.
MADRID & LONDON--(BUSINESS WIRE)--
Gestamp Solar, a leading global developer and operator of solar
photovoltaic plants, has changed its name to X-ELIO following the
successful completion of KKR's acquisition of an 80 percent stake in the
"X-ELIO combines all the elements that are needed to capture the
dramatic increase in demand for solar energy: capital resources to
invest in the long term, an entrepreneurial mindset, technology
leadership and the ability to scale the business,'' said Chief Executive
Officer Jorge Barredo. "The new name celebrates our heritage and
reflects X-ELIO's enormous growth potential with its etymological
cornerstones of Ex (meaning ‘out of' and ‘from') and Helios (the god who
is the personification of the sun in Greek mythology.)"
"The combination of X-ELIO's technological expertise and KKR's financial
firepower combines capability and capital and has created a new utility
player that will shape and support the revolution that is underway in
the world's energy market," said Jesús Olmos, Member and Global Co-Head
of Infrastructure at KKR. "The Paris climate agreement from December
2015 also highlights that X-ELIO is part of the drive to solve one of
the world's biggest challenges: how to reduce greenhouse gas emissions.
This investment adds to our strong belief and track record of investing
in renewable energy."
KKR completed the purchase, which was announced in July 2015, following
all regulatory approvals, third party consents and customary closing
conditions. The transaction valued X-ELIO at a total enterprise value of
around $1 billion and the company set a target to have up to 2.5 GW of
installed capacity in operation by 2020.
In Japan, where the company has two plants and 50 MW under operation,
X-ELIO now predicts it will reach as much as 600 MW of installed
capacity by the end of 2017. Half of that capacity is likely to come
from X-ELIO's own developments, with the other half being added through
Latin America is another key market for X-ELIO and the company has
already built several projects with an aggregate capacity of
approximately 100 MW. It is currently developing more than 500 MW in
Mexico and Chile, and actively entering other South American markets
such as Peru and Colombia.
In the U.S., where X-ELIO has a 24 MW portfolio of operating projects,
the company is working to increase its pipeline of projects, either via
its own greenfield developments, strategic partnerships with U.S.
companies or M&A deals.
The company, founded in 2005, has rapidly grown into a globally
recognized player in the PV space, helped by its integrated operating
model that coordinates each project's realization, including the Energy
Performance Certificate for new installations, in house.
Solar energy is increasingly cost competitive against conventional
electricity generation in many markets. Also, electrical grids worldwide
have been expanded in recent years, and are ready to receive and
distribute more electricity from PV plants.
"The energy world is going through a revolution as the growth of
renewable energies such as solar means we are going from a world of
scarce and declining resources to abundant and increasing resources,"
said Barredo. "Solar is well set to be one of the key energy sources and
revolutionize the global energy market, and we're convinced that X-ELIO
will be at the heart of it. We look forward to capturing the enormous
potential of the solar PV market together."
According to the SolarPower Europe Association, worldwide PV capacity
might have reached about 230 GW in 2015. This is an increase by about 50
GW from 2014 and is forecast to more than double in the next five years
up to 2020. By 2050, 16% of global electricity could be provided for by
PV systems, contributing to making solar power the world's largest
source of electricity, according to the International Energy Agency.
The X-ELIO investment is funded by KKR Global Infrastructure Investors
II, a $3.1 billion global fund, and is another example of how KKR helps
to meet vast demands for infrastructure development around the world.
KKR continues to actively invest in a broad spectrum of infrastructure
to meet critical needs and public policy objectives.
X-ELIO contributes to KKR's growing infrastructure footprint across
seven sectors including renewables, heating, rail, telecom, parking,
water & midstream with a presence in over 20 countries. In those
sectors, KKR has over $4.5 billion of equity committed. The investments
in renewable energy consist of assets in established alternative energy
technologies with stable, long-term cash flows. The sectors targeted by
KKR include hydro, solar, wind, geothermal and biofuels-based energy and
similar types of energy generation.
The infrastructure investments represent more than 3 GW of renewable
capacity. The X-ELIO acquisition also boosts the equity invested in
renewables by almost 50% and the solar capacity by more than 50%. X-ELIO
complements KKR's investments in other assets worldwide such as French
wind farm company Renvico, T-Solar's Spanish and Italian solar parks and ACCIONA
X-ELIO specializes in the development, construction, operation and
maintenance of solar plants in the U.S., India, the Middle East, Japan,
South Africa, South America, Italy, and Spain. The business is currently
present in 18 countries. The etymological cornerstones of X-ELIO's name
are Ex (meaning ‘out of' and ‘from') and Helios (the god who is the
personification of the sun in Greek mythology.) It reflects X-ELIO's
ambition to be a global industry leader with a consummate financial
performance as well as a sustainable, renewable energy provider,
dedicated to helping to cut greenhouse gases and fight climate change.
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 KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and
on Twitter @KKR_Co.
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