ERG Renew acquires 11 French and 6 German wind farms with an overall capacity of 206 MW

ERG Renew has recently signed an agreement for the acquisition from a fund managed by Impax Asset Management Group of eleven wind farms in France, with an installed capacity of 124 MW, and six in Germany, with an installed capacity of 82 MW, representing an overall capacity of 206 MW. The wind farms, which came into operation between 2009 and 2014 in France and between 2004 and 2014 in Germany, have an estimated average annual output of around 410 GWh.

The transaction also includes two companies, one French and one German, which provide operational and commercial technical assistance, via a team of twenty-eight professionals, to "captive" and third-party wind power operators in France, Germany and Poland, covering an overall 800 MW (of which, 206 MW concerned with the acquisition and another 83 MW owned by ERG Renew in Germany).

The transaction's enterprise value amounts to around €297 million, corresponding to a multiple of approximately 1.4 million Euro per MW. The wind farms are already entirely funded through limited recourse project financing. EBITDA, in 2016, is forecast at approximately €30 million. The closing is scheduled to take place by the end of this year and the total equity consideration to be paid at such time amounts to €128 million.

Luca Bettonte, ERG's Chief Executive Officer, commented:

"This transaction marks a significant step forward in the international development strategy of ERG Renew which, also considering the 40 MW being constructed in Poland, by the end of the year will have a total installed capacity of 629 MW outside of Italy, corresponding to 37% of the overall 1.7 GW installed. The transaction, which allows the Group to position itself as ninth onshore wind power operator in France and eighth at European level, involves two countries where renewables are considered an essential factor of their energy policy and which we therefore view as fundamental for our future growth."

Lastly, the acquisition of two companies specialised in operations management services will enable a gradual insourcing of activities pertaining to the management of our wind farms, thus making it possible to both achieve major synergies and expand our presence as industrial operators in the two countries.