Alternus Energy acquisition of 7 operating Italian solar projects

Alternus Energy Inc has announced a total acquisition that will consist of 7 operating photovoltaic plants located in Italy. In aggregate, the plants have a total installed capacity of 5.1 MW.

The total compensation for the acquisition is approximately US$8.1 million cash, less US$1.5 million held back for the closing of the final plant, and less US$0.4 million held in escrow against certain tax open items and as a hold back for any unexpected items. The company will utilize its existing credit facility to fund the transaction. The closing of the final plant is expected to occur by June 30, 2019.

The 5.1 MW of parks currently generate annual revenues in excess of US$1.5 million at over 85% gross margins. Alternus Energy expects to increase the annual production of the parks by about 20% after some identified remedial work which would then increase both annual revenues and gross margins by the same percentage.