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July 18, 2024
PI Global Investments
Private Equity

KKR Launches $3 Billion Takeover Offer for German Renewable Energy Platform Encavis

Alternative asset and private equity investor KKR announced that it will launch a takeover offer to acquire German renewable energy platform Encavis in a transaction valuing the equity of the company at €2.8 billion (USD$3 billion), in a move aimed at supporting the growth and development of Encavis’ project pipeline to benefit from opportunities driven by national and international clean energy expansion plans.

Encavis said that its Management Board and the Supervisory Board expressly support the offer, and will recommend its acceptance to shareholders. Germany-based family company Viessmann Group will invest as shareholder in a KKR-led consortium, and existing Encavis shareholder ABACON and other shareholders have agreed to sell around 18% and roll over around 13% of Encavis shares, with ABACON remaining an indirect shareholder in the company.

Based in Neubiberg, Germany, Encavis acquires and operates (onshore) wind farms and solar parks across Europe, with an operating capacity of 2.2 GW consisting of a portfolio of more than 190 solar photovoltaic and more than 40 onshore wind farms in 10 countries, in addition to a multi-year project pipeline.

The acquisition offer comes as clean energy capacity across Europe is set to grow significantly over the next several years, supported by EU legislation, such as the EU’s Renewable Energy Directive, which mandates that renewable energy make up 42.5% of the EU’s overall energy consumption by 2030, from approximately 22% of the EU energy mix in 2021.

According to the companies, the transaction will position Encavis as a leading German player in the energy transition, with financial support from KKR and Viessmann enabling the company to capitalize on growth opportunities in the sector, bolstering its project development pipeline, increasing its capacity, and expanding into new markets.

Dr Christoph Husmann, Spokesman of the Management Board and CFO of Encavis said:

“Over the past years, Encavis has grown into one of the leading independent power producers in Europe and has strong ambitions to further continue on this growth path. With KKR and Viessmann, we aim to bring partners on board who share the same long-term and entrepreneurial approach and extensive experience of investing behind the energy transition.”

The transaction marks the latest in a series of energy transition infrastructure-focused moves for KKR, the $1.7 billion acquisition in December of Scotland-based energy and electrifications solutions company Smart Metering Systems (SMS), a recent $750 million investment in London-based transport electrification and battery storage solutions provider Zenobē, and the launch of a series of clean energy platforms including Virescent Infrastructure in India, Aster Renewable Energy in Asia and Stellar Renewable Power targeting long-duration high-yielding solar energy investments. 

Vincent Policard, Partner and Co-Head of European Infrastructure at KKR, said:

“Unlocking the full potential of renewable energy requires expertise as well as substantial long-term capital. We are pleased that KKR’s strategic investment will provide Encavis with the necessary long-term financial resources at a pivotal time for the Company and position it to seize emerging opportunities and solidify its strength in the clean energy landscape. Furthermore, it also contributes to fostering a more energy-independent Europe.”

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