Ormat Completed the Acquisition of Contracted Operating Geothermal and Solar Assets from Enel Green Power North America

Source Company Press Release
Company Ormat Technologies, Inc., Enel SpA
Tags Country: United States, M&A: Asset Deal, Deals, Renewables: Renewables News, Segment: Power
Date January 04, 2024
  • Strategic Acquisition Advances Ormat’s Electricity Segment Growth Plans and Further Strengthens its Presence in the U.S. Renewable Energy Sector
  • Increased Ormat Electricity Segment Generating Portfolio to 1,215 MW
  • Assets Located in Nevada, Utah, Connecticut and California

Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, announces that it has closed the previously announced acquisition of a portfolio of geothermal and solar assets from Enel Green Power North America (EGPNA), a subsidiary of  Enel SpA (ENEL.MI, LLC). Under the agreement, Ormat paid $271 million for 100% of the equity interest in the portfolio assets.

The acquired portfolio includes two contracted operating geothermal power plants and one triple hybrid geothermal, solar PV and solar thermal power plant with a total geothermal capacity of approximately 40 MW and Solar PV of 20MW, two Solar assets with a total nameplate capacity of 40 MW, and two greenfield development assets.

The overall transaction was funded through available cash, in combination with $200M newly issued long-term corporate debt. The acquisition is expected to be immediately accretive to both revenues and EBITDA, and Ormat intends to further improve the performance of the acquired asset portfolio through a series of operational enhancement and optimization initiatives.

Doron Blachar, CEO of Ormat Technologies said, “Ormat is pleased to close this transaction and begin capturing the value of these assets for our shareholders. The acquired assets will be immediately accretive to Ormat’s profitability, and we expect to improve the generation, revenues and EBITDA performance through a series of value-enhancement initiatives, including the integration of Ormat’s own state-of-the-art equipment. We look forward to integrating these attractive geothermal and solar assets into our existing portfolio and translating our results into enhanced shareholder value creation in both the near-and long-term. This deal serves as a testimony to our team’s execution as well as Ormat’s position as a leader in the renewable energy space, while reflecting our ongoing commitment to advancing renewable power solutions, globally.”

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd