Private equity firm First Reserve Corp. has completed the acquisition of Spanish energy company Gamesa Solar for a total consideration of $406.5 million.
The U.S.-based firm’s acquisition of Gamesa along with its purchase in Italy of Ener3, a company that designs and builds photovoltaic power plants, has created a European renewable energy group with the ability to deliver solar capacity of up to 400 MW in Southern Europe over the next four years, First Reserve said in a release Monday.
The group expects that two-thirds of this capacity will be delivered to customers on a turnkey project basis, while the remaining capacity will be developed on its own account.
The group plans to invest $934.5 million into developing renewable energy generation assets over the next four years, said Paolo Pietrogrande, who will become chief executive officer of the new group.
“Gamesa Solar has delivered 40 MW of photovoltaic projects and, with an additional 50 MW to be completed within 2008, is a major solar developer and turn-key contractor. Its leading position in the Spanish market provides an excellent foundation to exploit the attractive solar development opportunities that exist in Southern Europe and the Mediterranean,” he said.
Pietrogrande previously held positions as CEO of Enel GreenPower, chairman of Atmos Holding and a director of Trinergy plc and has an established record of successfully leading renewable energy companies.
Antonio Cavallè, who will become managing director of Gamesa Solar and has led the company to its current leadership position in Spain, said that the merger between the leading Spanish solar energy business and an established Italian renewable developer will pave the road to further commercial growth in the most promising European market.
“Between us we have over 500 man-years of renewable energy expertise led by people such as Carlo Zuccaro, one of the pioneers of grid connected photovoltaic projects, who will lead innovation and new technology development,” he said.