Canadian clean energy giant Innergex Renewable Energy (TSX:INE) has officially completed its acquisition of Alterra Power (TSX:AXY) in a smashing $1.1 billion deal.
The companies entered the deal last October and finalized on Tuesday (February 6), which makes Innergex’s acquisition of Alterra its biggest “and most significant to date,” the press release states with a combined 22 independent power projects in British Columbia.
In total, the addition of 485 MW of renewable energy assets from Alterra brings Innergex’s total capacity to just over 1,600 MW, officially making Innergex the largest independent renewable energy producer in British Columbia. According to the Vancouver Sun, 1,200 of the 1,600 MW will be operated out of British Columbia, which accounts for roughly 10 percent of the province’s overall Hydro generated capacity.
“Our acquisition of Alterra is about accelerating our growth and taking Innergex to the next level,” Michel Letellier, president and CEO of Innergex said in the company press release.
Case in point, Innergex expects its net installed capacity will reach 2,000 MW by 2020–a 400 MW increase from its current capacity–from a wide wide range of resources, including hydro, wind, solar and geothermal projects not just in Canada, but in the US, France and Finland as well.
“This transaction gives us a stronger platform for solid, long-term growth in the United States, the world’s second largest growth market for renewables,” Letellier said, adding by bringing Innergex and Alterra together, the company now hopes to expand its presence beyond the US and Canada and into Latin America and Europe. “It’s another significant step forward in Innergex’s international expansion, which should be beneficial for our shareholders.”
As it currently stands, Innergex’s portfolio of assets consists of interests in 63 facilities with a net installed capacity of 1,502 MW, including 34 hydroelectric facilities, 24 wind farms, three solar fairs, and two geothermal facilities. Also included in the net installed capacity are interests in two projects currently under construction, as well as three potential projects all at different stages of development with an aggregate net capacity totaling over 8,500 MW.
Since announcing the completed acquisition on Tuesday, shares of Innergex have tumbled slightly, dipping 3.24 percent to close at $13.15 on Thursday (February 8). That said, according to data from Tip Ranks, two analysts currently have a price target for the company at $15, while the analysis consensus recommends to “hold” the company.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.