Renewable energy production company Albioma announced today an agreement to be acquired by global alternative asset and private equity investor KKR. The offer, at €50 per share plus a €0.84 euro cash dividend values Albioma at over €1.6 billion.
Albioma invests in biomass, photovoltaics and geothermal energy, with over 1 GW of installed capacity, including 14 power plants in Overseas France, Mauritius and Brazil. Through its partnership with the sugar industry, the company produces renewable power from bagasse, a fibrous residue from sugar cane. Albioma is also the leading generator of photovoltaic power overseas, and the company recently entered the geothermal energy business through the acquisition of two power plants in Turkey.
Frédéric Moyne, Albioma’s Chairman and CEO said:
“This offer from KKR confirms the relevance of Albioma’s vision, the quality of strategy execution and the value of our positioning, particularly in French overseas. It also highlights the Group’s successful transformation to serve the energy transition thanks to the continued commitment of our teams, which will be continued and strengthened with the support of KKR.”
The transaction marks the latest in a series of energy transition-focused moves for KKR, including the launch this week of Aster Renewable Energy, a new Asia-focused renewable energy investment platform. In December, the firm launched Stellar Renewable Power, a new platform aimed at originating long-duration high-yielding solar energy investments, and in 2020, KKR launched Virescent Infrastructure, a platform aiming to acquire, own and operate renewable assets in India. Over the past decade, KKR has deployed approximately $4 billion globally into renewable assets, which have an operational power generation capacity of 14.2 GW.
KKR said that it supports Albioma’s ambition to invest heavily in the energy transition in the French overseas departments by 2025, and that it will provide operational expertise and financial resources to accelerate the company’s international expansion.
Vincent Policard, Partner and Co-Head of European Infrastructure at KKR, said:
“The energy transition requires major long-term investment. Alongside Frédéric Moyne and Albioma’s team, KKR is committed to accelerate energy transition in French overseas departments and the international expansion, while significantly increasing renewables in the energy mix to facilitate the exit from fossil fuels. KKR’s infrastructure business has the capital, renewable energy expertise and global footprint to support the execution of Albioma’s 2030 roadmap.”