Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) has signed an agreement for the investment by Energy Infrastructure Partners (“EIP”) in a 30% stake in Boralex’s assets and development pipeline in France. The transaction will be completed after the required consultation of employee representatives and after obtaining the applicable regulatory approvals. It is expected to close in the first semester of 2022.
Transaction highlights
- Boralex is entering into a long-term partnership with EIP, a Switzerland-based global investment manager specialized in the energy sector, which will be acquiring a 30% stake in Boralex’s operations in France.
- This partnership includes French assets in operation, 1.1 GW to date, as well as a 1.5 GW portfolio of projects in the French market.
- Boralex’s operations in France generated EBITDA(A) of €134M ($193M CAD) in 2021.
- This transaction will result in a pre-money equity valuation of €1,718M ($2,474M CAD) for all Boralex operations in France, representing an enterprise value to EBITDA(A) 2021 multiple of 20.3.
- Cash proceeds to Boralex at transaction close will amount to €532M ($766M CAD) and a portion thereof will be invested into Boralex operations in France (through a capital increase).
- Boralex remains the majority shareholder and manager of its assets in France.
Present in France for over 20 years, Boralex is a pioneer in developing, building, owning, and operating renewable energy production sites through its unique model. The Corporation has expanded to meet the French market’s growing energy needs and established itself as the largest independent producer of onshore wind energy in France since 2014.
This partnership will strengthen Boralex’s position in this market and enable it to accelerate its growth to meet the ambitious objectives in its Strategic Plan which are, for France, to increase installed capacity to 1.8 GW in 2025 and up to 3 GW in 2030. Boralex sought a partner with a long-term vision, able to invest in the company’s future development in wind and solar power, as well as storage. EIP has all the qualities needed for Boralex to continue to stand out in the French market.
“We are grateful to the EIP team for the trust they’ve placed in us. We look forward to joining forces to fulfil our ambitions alongside a renowned player in our industry who knows the European renewable energy sector well and who shares our values of corporate social responsibility. In addition to creating significant value for our shareholders, this investment illustrates the quality of our team’s work in France and Canada and lets us showcase the leading platform we have been building for over 20 years,” said Patrick Decostre, President and CEO.
Boralex remains the majority shareholder and manager of its assets in France
Through its 70% stake, Boralex remains the majority shareholder in its French operations.
Boralex also continues to manage all its operating assets, with a total capacity of over 1 GW, across nearly 70 French sites. Boralex’s production quality and industrial expertise in maintaining its assets make it possible to extend the life of this portfolio, either by signing a power purchase agreement directly with commercial and industrial customers (corporate PPA) or as a repowering. Note that current asset sales contracts have an average remaining life of nine years. Boralex will also keep managing its portfolio of projects under development or construction, totalling 1.5 GW in France, and will ensure their progress continues.
“Partnering with EIP is a great opportunity for Boralex. With its solid experience in renewable energy and a significant foothold in Europe, EIP can support the realization of our ambitions. Our goal was to secure a long-term partnership with a sector specialist to support our growth. We are very proud of this achievement,” declared Nicolas Wolff, Vice-President and General Manager, Boralex Europe.
EIP, the ideal partner for Boralex
Energy Infrastructure Partners (EIP) is a Switzerland-based, global investment manager focused on high quality, large-scale renewables and system-critical energy infrastructure assets. As one of the few specialist energy investors, EIP works closely with an extensive global industry network, and brings broad transaction and investment management experience demonstrated by its long-term collaboration with strong, top-tier industrial partners.
“For several years, we have been closely following Boralex, which stands out for its fully integrated operation, commercialization, financing and top tier development capabilities. We look forward to working closely with our partner Boralex to build on their strong track record in the French market and providing our clients access to this impressive renewable energy platform,” commented Roland Dörig, Managing Partner, EIP.
For Boralex, financial advisors Lazard, Accuracy, KPMG Canada, law firm Kaufhold & Reveillaud Avocats and technical advisors EPILOGUE Avocats, Mott MacDonald, and Everoze collaborated extensively on this successful transaction.