Terra Firma Buys Everpower
The British private equity firm makes a wind farm buy as other potential acquirers are only now amassing funds.
Terra Firma, the British private equity firm, will buy Everpower Wind Holdings for an acquisition to tap into the expanding renewable energy space in the US.
Renewable energy is awaiting a mandate push from Washington that will provide tax credits to companies like Everpower, and to geothermal and solar energy companies as well, that, yet-untold, is going to fuel domestic growth and perhaps dealmaking potential.
The deal was reportedly worth about $350 million.
Everpower has offices in New York City and in Portland, Oregon, and has wind farms in New York, Oregon, Pennsylvania and Ohio.
Everpower’s management team is reportedly re-investing in the company alongside Terra Firma; Good Energies, a renewable energy fund, is the seller.
Guy Hands, Terra Firma’s chairman, called the American renewable energy market one worth “significant investment” that is “fast-growing;” Everpower continues to build out a project pipeline beyond those in the four aforementioned states.
Terra Firma’s advisors were Morgan Stanley and Climate Change Capital.
Right now, Terra Firma could use a winner; its buyout in 2007 of music giant EMI resulted in nearly $2 billion in writedowns and a pair of capital injections to keep the business healthy. Terra Firma’s other 2009 deal was Consolidated Pastoral Company, Australia’s second-largest beef producer.
Lately, private equity firms have successfully garnered investors to launch funds in the sector that could also target renewable energy. NGP Energy Technology Partners, a Washington-based firm, closed its second fund at $348 million earlier this month.
Another, Tenaska Capital Management LLC, also succeeded in putting together a joint investment venture called Frontier Gas Services LLC with Dallas private equity group Energy Spectrum Partners.
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