Energy Capital Partners to Acquire Atlantica for $2.55 Billion in Cash

Private equity firm Energy Capital Partners announced on May 28, 2024, that it is acquiring UK-based Atlantica Sustainable Infrastructure plc (AY) for $2.55 billion in cash.

Deal Structure:

Under the terms of the agreement, Energy Capital Partners has agreed to acquire all of the shares of Atlantica for $22 per share in cash, representing a discount of 6.06% from the stock’s last close.

Strategic Review and Deal Speculation:

Atlantica had commenced a strategic review in February last year to enhance shareholder value, and Bloomberg, a few weeks ago had reported that Energy Capital was in advanced talks to acquire Atlantica Sustainable Infrastructure. The present offer represents a premium of about 5.16% from the stock’s close before the news report was announced.

Majority Shareholder Support:

Algonquin Power & Utilities (AQN), which holds about 42.2% of Atlantica shares, also supported the acquisition. The deal values Algoquin’s stake at about $1.08 billion.

“Algonquin expects the proceeds will be used to help reduce debt and recapitalize its balance sheet as part of its ongoing strategic transition to a pure play regulated utility,” it said in a statement.

Company Profile:

Atlantica owns a portfolio of assets across the United States, Europe, South America, and Africa, dealing with renewable energy like wind, solar, and natural gas. Atlantica’s EV/EBITDA (TTM) ratio is 11.95, below the sector median of 12.06.

The transaction is expected to close in the fourth quarter of 2024 or early first quarter of 2025.

Deal Metrics:

More details about this merger can be found on the Deal Metrics page at:

Deal Metrics for the acquisition of Atlantica Sustainable Infrastructure plc (AY) by Energy Capital Partners 

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through eventual completion or failure.
• Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates. 
• And a whole lot more.

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Editor’s Note: Baranjot Kaur contributed to this article