Fortune 200 company AES and one of Canada’s largest investment managers AIMCo are set to acquire FTP Power LLC, better known as sPower, the United States’ largest owner, operator, and developer of utility-scale solar.
In a press release published late last week, the AES Corporation announced that in partnership with the Alberta Investment Management Corporation (AIMCo), on behalf of certain of its clients, would partner to acquire FTP Power LLC (sPower) from Fir Tree Partners and its minority owners for $853 million in cash, as well as the assumption of $724 million in non-recourse debt. As a result of the transaction, AES and AIMCo would each directly and independently purchase and own slightly below 50% equity interests in sPower.
According to the press release announcing the transaction, sPower currently includes 1,274 megawatts (MW) worth of solar and wind projects currently in operation or under construction, as well as a development pipeline of more than 10,000 MW worth of projects across the United States.
As a result of the acquisition, AES’ own ownership of renewable energy projects in operation or under construction would grow to 9,552 MW.
“We are very pleased to acquire sPower, the largest independent solar developer in the United States,” said Andrés Gluski, AES President and Chief Executive Officer. “sPower not only brings 1.3 GW of installed capacity with an average remaining contract life of more than 20 years, but a first class management and development team with a pipeline of more than 10 GW of projects.”
“AIMCo is excited to acquire an approximate 50% interest in sPower, on behalf of our clients and consistent with our investment mandate, and in partnership with AES,” added Kevin Uebelein, Chief Executive Officer of AIMCo. “sPower is an impressive organization that has and continues to successfully develop and execute a robust renewable energy development pipeline, delivering value to all of its many stakeholders. Our partner, AES, is a world class leader in sustainable energy and we are delighted to be working with them.”
sPower has a portfolio of over 150 operating projects across the United States and the UK, and regularly adds new acquisitions to its portfolio.
“With the help of Fir Tree, we have experienced incredible growth over the last three years,” said Ryan Creamer, Chief Executive Officer of sPower. “We are excited to become part of the AES/AIMCo partnership and we are confident that it positions us to continue to grow, develop and maximize the platform that we have created. On behalf of the entire sPower team, I want to thank Fir Tree for its support and vision that have been so critical to our success.”
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