Schroders, a London-based asset management company, announced that it had signed an agreement to acquire a 75% shareholding in Greencoat Capital Holdings, a British renewables investor, for £358 million (~$474.09 million).
With this acquisition, Greencoat will become part of Schroders Capital, a private market division of Schroders. The acquisition will be completed in the first half (1H) of 2022.
Schroders has kept options for their and the Greencoat management shareholders to acquire the remaining 25% stake at a fair market value.
Greencoat is a specialist investment manager focusing on renewable energy infrastructure investing, including wind, solar, bioenergy, and heat. It operates nearly 200 power generation assets across the U.K., Europe, and the U.S., with an aggregate net generation capacity of over 3 GW.
Greencoat’s U.S. launch in October this year follows investment in six wind assets in the U.S. These comprise a 24% stake in an 861 MW wind portfolio in South Texas and an 80% stake in a 405 MW wind portfolio in Illinois.
Schroders said the U.S. and European market for renewable energy assets is expected to grow by over $1 trillion by 2030. It would take advantage of this global opportunity by focusing on investment and asset management into renewables.
The company added the agreement is in line with its strategy to build a comprehensive private assets platform and enhance its position in sustainability. The acquisition will help Schroders provide private capital for the energy transition required to achieve a net-zero future.
Greencoat Capital Holdings has pioneered large-scale renewable energy infrastructure investments in listed and private formats. The company has around £6.7 billion (~$8.87 billion) of assets under management as of November 30, 2021.
Last year, RWE, a global renewable energy company, signed an agreement with Greencoat to sell a 49% stake in the U.K. offshore wind farm Humber Gateway for a cash consideration of £648 million (~$ 863.62 million).
According to Mercom’s Solar M&A Report, there were 29 solar mergers and acquisitions (M&A) transactions in Q3 2021 compared to 34 M&A transactions in Q2 2021.