Global investment firm KKR has acquired Encavis, a German independent power producer (IPP) and renewable energy developer.
Leading a consortium of investors via a holding company, Elbe BidCo, KKR acquired 87.41% of outstanding shares in Encavis at €17.50 (US$18.40) per share. Family-run investor Veissmann Generations Group and ABACON Capital are the other two parties in the consortium.
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Vincent Policard, partner and co-head of European Infrastructure at KKR, said the acquisition will “enable Encavis to capitalise even better on emerging opportunities in the renewable energy sector” and aligns with KKR’s broader mission of fostering a more energy-independent Europe.”
Christoph Husmann, CFO of Encavis, said the deal would open “a new chapter in our company’s history…we will further expand our portfolio of renewable energy production facilities, develop our competencies and strengthen Encavis’ market position in Europe.”
Encavis operates in twelve European countries. Most recently, it has signed financing, offtake and development deals for projects in its native Germany. September saw the company announce plans to develop a 500MW PV portfolio alongside developer Innovar Solar, and earlier this year it secured financing and signed a power purchase agreement (PPA) for a 260MW project elsewhere in the country.
KKR’s acquisition was made through its Global Infrastructure business, which the firm says oversees approximately US$77 billion in infrastructure investments. In March, it acquired a majority stake in US solar and energy storage developer Avantus, which it now shares with pre-existing Avantus investor EIG.
In addition to renewable energy assets, KKR owns Crescent Energy, a major US oil and gas producer listed on the New York Stock Exchange.
Private equity has been acquiring significant portions of the solar developer market. In the last year, Canadian asset owner Brookfield has acquired the utility-scale solar arm of US utility Duke Energy (for US$2.8 billion) and a majority stake in French IPP Neoen for US$6.1 billion.
