SunEdison/TerraForm Power to acquire First Wind for $2.4bn

SunEdison Inc. and its yieldco affiliate, TerraForm Power Inc., have signed a definitive agreement to acquire First Wind for $2.4bn.

Equally owned by D.E. Shaw & Co. and Madison Dearborn Partners, First Wind is a leading independent wind and solar development and asset management company in the U.S. Marathon Capital said Dec. 2 that it served as an advisor to the Board of Managers of First Wind Holdings LLC. Total transaction consideration for the acquisition of First Wind is up to $2.4bn, comprised of $1.9bn in upfront consideration and $510m in earn-out.

“Marathon Capital has known and advised First Wind and its Board for several years. We are delighted that this talented team is being combined into the SunEdison platform,” said Ted Brandt, CEO of Marathon Capital.

An application with the Federal Energy Regulatory Commission related to this transaction, covering a buyout of Emera stakes in various First Wind projects that will hapen just before the sale to SunEdison/TerraForm Power, was filed on Dec. 2.

SunEdison will acquire over 1.6 GW of project pipeline and a backlog of wind and solar projects that will be added to TerraForm Power’s project list which are expected to become operational in 2015-2017. Over 600 MW of the pipeline projects are solar development projects. TerraForm Power will acquire 500 MW of contracted operating wind projects and 21 MW of contracted solar projects. An additional 6.4 GW of project development opportunities are included in the transaction.

Brandt added: “The combination of SunEdison’s solar expertise with First Wind’s expertise in wind, surrounded by the growing financial prowess of SunEdison and TerraForm should create a juggernaut. We are proud to have played a role in this critical transaction which we view as an endorsement of the growing importance of the renewable energy industry.”

Headquartered in Boston, Mass., First Wind focuses on developing and operating projects in the Northeastern and Western regions of the Continental United States and in Hawaii. First Wind’s portfolio includes 1,300 MW of operating and under-construction wind and solar renewable energy assets.

Marathon Capital is a leading investment bank and financial advisory firm focused on providing financial advice in the areas of M&A, capital raising of debt and equity, project finance, tax equity, financial restructuring, recapitalization, bankruptcy and workout situations in the global energy and infrastructure markets.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.