U.S-based private equity firm Kohlberg Kravis Roberts (KKR) has signed an agreement to acquire the British power generation company ContourGlobal for approximately £1.75 billion (~$2.18 billion).

KKR is a leading global investment firm with approximately $479 billion in assets under management as of March 2022.

The deal was brokered through Cretaceous Bidco, a newly formed company indirectly owned by funds advised by KKR. The equity firm will pay £2.63 (~$3.25) for each share, which represents a premium of 36% to the closing share price on May 16.

ContourGlobal is a wholesale power producer with an active portfolio of 138 thermal and renewable power plants operational across Africa, Latin America, Europe, and North America. The company has power projects of 6.3 GW capacity across 20 countries.

The company’s renewable portfolio consists of plants using wind, solar and hydropower resources. As of December 31, 2021, this segment had an installed gross capacity of 1,816 MW.

In 2021, ContourGlobal recorded consolidated revenue of $2,152 million and an EBIDTA of $842 million.

ContourGlobal sells power under long-term contracts to investment grade counterparties or against regulated tariffs.

With the acquisition, KKR is mulling significant future organic and inorganic value-accretive growth, which will help meet its decarbonization targets.

“As a long-term global investor in critical energy infrastructure, KKR will work with ContourGlobal’s management team and provide the capital needed to expand its portfolio of assets, building on ContourGlobal’s leading global footprint and operational track record,” KKR Director Ryan Miller said.

KKR has been trying to adopt cleantech technologies with acquisitions and create new renewable platforms. Earlier this month, the U.S-based private equity firm announced the launch of Aster Renewable Energy to develop, build, and operate solar, wind, and energy storage projects in Vietnam and Taiwan. The newly formed renewables platform is headquartered in Singapore and would help KKR expand its reach into the Asian clean energy market.

In February this year, KKR-backed Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust (InvIT) by Virescent Infrastructure, raised ₹6.5 billion (~$83.65 million) through domestic bond issuance.