ERG, which is owned by Italy's Garrone family and counts among Australian fund IFM among its investors, said it would set up a U.S. holding company with Apex to manage the assets, comprising a wind farm and solar plant with 317 megawatts of installed capacity. ERG will spend $270 million to buy 75% of the holding company while Apex will own 25%.
"We expect to present our strategy and growth targets in the United States to the financial community in the first half of next year with the 2024-28 industrial plan," CEO Paolo Merli said.
Apex will continue running the two assets operationally. The deal is expected to close in the first half of next year subject to clearance from U.S. and European authorities.
The plants, located in the U.S. states of Iowa and Illinois respectively, are estimated to generate around 1 terawatt hours (TWh), ERG said in a statement.
The two assets benefit from tax equity investments under U.S. energy incentive schemes, ERG said, adding it expects steady revenues from the projects via long-term power purchase agreements. The assets will be debt free at closing.
ERG and Apex will also cooperate on new solar and onshore wind projects of about 1 gigawatts being developed in the United States.
Rothschild & Co acted as financial advisor on the transaction.
