ERG signs agreement to buy Les Moulins de Frouges SAS and renewable assets

ERG has agreed to buy a French company that owns six wind farms in northern France with a combined capacity of 52 MW.

Through its subsidiary ERG Eolienne France SAS, the Italian group will acquire Les Moulins de Frouges SAS from Zurich-based Profond Finanzgesellschaft AG, paying EUR52.2 million (US$59 million). The target entity is the owner of six operational wind parks in the Hauts-de-France region, which have been operating since between 2007 and 2009.

ERG expects the deal to be completed in the second quarter of 2019, after receiving clearance by the French Ministry of Economy and Finance.

Unicredit was financial and mergers and acquisition advisor to ERG on the deal, with Orrick acting as legal advisor and E&Y accounting and tax.