VINCI has signed an agreement to acquire ACS’s energy business.
The deal consists in:
The transaction price is based on an enterprise value of EUR4.2 billion (US$4.9 billion). It leads to an estimated purchase price at closing of c. EUR4.9 billion (US$5.7 billion), assuming a closing at year-end 2021 and after taking into account around EUR0.7 billion (US$0.8 billion) of net cash items, working capital and other adjustments. In addition, ACS would receive additional payments of EUR40 million (US$47 million) for each ready-to-build GW developed by the company over a period of maximum 8.5 years after closing, up to 15 GW – i.e., a cumulative maximum contingent payment over time of EUR600 million (US$705 million).
The acquisition will be financed through VINCI’s available cash and credit lines.
Moreover, VINCI and ACS also intend to build a partnership through the setting up of a joint venture, with the right to acquire at market terms ‘mature renewables assets’, i.e. fully developed, built and connected to the grid by the company in the future. This JV would be 51%-owned and fully consolidated by VINCI.
The acquisition is subject to customary regulatory approvals, including merger control, and is anticipated to close around the end of year 2021.