This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

KKR to Take Piece of Acciona Renewables Arm

NEW YORK (The Deal) -- New York buyout shop KKR & Co.  (KKR) said Tuesday it had snapped up a third of the international renewable energy arm of Spanish infrastructure group Acciona in a deal valuing the unit at an enterprise value of 2.6 billion euros ($3.54 billion).

KKR will pay 417 million euros for its equity stake and will invest further to fund the growth of Acciona Energia International ahead of planned an initial public offering. The investment values AEI's equity at 1.3 billion euros, while the unit has a further 1.3 billion euros in debt, the companies said.

AEI owns wind farms and solar energy assets that can produce as much as 2.3 gigawatts of energy across the 14 countries in which it operates. AEI is expected to return 120 million euros per annum to its owners, meaning KKR's investment equates to a multiple of about 21 times earnings based on the enterprise value.

"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 companies said.

The price of European wind assets has declined in recent years as governments have scaled back subsidies that underpinned stable returns and made renewable energy a favorite investment of pension and infrastructure funds.

Acciona launched a sale of the minority stake in its international unit to help raise as much as 1 billion euros to reshape its business after Spain cut subsidies for wind energy output in July last year. The reduction in subsidies cut Ebitda at Acciona's Spanish wind operations by about 360 million euros,or 40%, "turning it into a loss-making activity," according to Acciona's 2013 annual report presentation. The Spanish wind assets are not part of the AEI operations.

KKR's investment was made through its Global Infrastructure Fund. The acquisition is the fund's 12th investment and comes three years after its made its first foray into European wind energy in June 2011, when it launched a 236 million euro joint venture with Italy's Sorgenia SpA to build wind farms in France.

"This investment adds to our track record of building successful partnerships with corporates and families," said KKR co-Chairman and co-CEO Henry Kravis. "I am really optimistic about the opportunity to partner with such a prominent renewable energy company and to help further develop what is already one of the largest operating renewable portfolios in the world."

Acciona Chairman Jose Manuel Entrecanales and his family own about 54% of Acciona through subsidiaries of their holding company Grupo Entrecanales.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs