Quebec renewable firm Innergex to buy B.C.-based Alterra Power in $1.1B deal
The cash and stock deal will diversify the company's geographic footprint, adding operating and under construction projects in the U.S. and Iceland
LONGUEUIL, Que.—Innergex Renewable Energy Inc. has agreed to buy competing clean power firm Alterra Power Corp. in a deal worth $1.1 billion.
The acquisition will add to the Quebec-based company’s footprint in British Columbia, as well as bring a number of operating and under-development renewable sites in the U.S. and Iceland under its control.
Innergex said the cash and stock deal totals $1.1 billion, including the assumption of Alterra’s debt. It will pay $8.25 per share to Alterra shareholders, a premium of 58 per cent on the company’s 20-day weighted average price.
Michel Letellier, president and CEO of Innergex, said the agreement will significantly accelerate the Quebec company’s growth profile.
“The geographic and energy sources profile of Alterra’s portfolio further diversifies Innergex’s asset base by adding operating hydro and wind projects in Canada, a large number of operating, under construction and prospective wind projects in the U.S. and operating geothermal assets in Iceland,” he said in a statement.
Currently, Innergex’s operations are focused mainly on wind and hydro assets in Quebec, B.C. and France. It operates dozens of projects across Canada, but has just one small-scale wind farm in the U.S.
Vancouver-based Alterra has eight operating clean power projects, three under construction and three others at the advanced development stage.
To finance the deal, Innergex has secured a $150 million loan from pension fund manager La Caisse de dépôt et placement du Québec. It has also agreed to increase its revolving credit facility with two Canadian banks as a result of the acquisition.
Alerra shareholders are expected to vote on the deal in December.
Along with shareholder approval, the agreement will need green lights from regulators in Canada and the U.S.. Innergex said it expects the deal to close in the first quarter of next year.