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Airtricity, one of the leading renewable energy companies,
has announced that it has entered into a definitive agreement
to sell its North American business unit (Airtricity North
America) to E.ON AG for a purchase price equating to an enterprise
value of approximately $1.4 billion (just under €1bn)
and subject to closing adjustments.
The transaction is the culmination of a process commenced
by Airtricity in May of this year to examine strategic and
financing alternatives for its North American business unit.
This process resulted in significant investor interest and
the Board of Directors of Airtricity has concluded that it
is in the best interest of the company and its shareholders
to proceed with a sale of 100% of its interests in Airtricity
North America.
The proceeds of the sale of the North American business unit
will support the ongoing development of Airtricity's European
business.
Airtricity North America initiated wind power development
activities in 2003 and has over 80 employees with offices
in Chicago, Austin and Toronto. The company is currently active
in nine states in the US - with greater emphasis in Texas
and the Northeast as well as a development pipeline in Canada.
Airtricity North America currently operates wind farms with
around 210 MW installed capacity, with an additional 880 MW
of projects expected to be operational by the end of 2008.
In addition, to support long-term growth across the US and
Canada, the company has more than 1,000 MW of projects in
an advanced development stage, while more than 5,000 MW are
in an early development stage.
Airtricity's Chief Executive Officer, Eddie O'Connor commented
that - "E.ON is a company that has made a significant
commitment to investing in renewable energy and its expertise
and resources will allow Airtricity North America to execute
its ambitious plans for the development and construction of
wind energy projects in the US and Canada. We will work closely
with E.ON during the completion stage of this transaction."
Airtricity Chairman and Chief Executive of NTR, Jim Barry
added that - "this transaction underscores the valuation
of Airtricity's wind assets and development pipeline. We believe
that E.ON will be an excellent parent for the US business."
The transaction is subject to customary closing conditions
- including certain federal and state regulatory approvals
and clearance. The transaction is expected to close by the
end of the fourth quarter of 2007.
Credit Suisse acted as financial advisor and Skadden, Arps,
Slate, Meagher & Flom LLP acted as legal advisor to Airtricity
on this transaction.
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