Algonquin Power & Utilities Corp. (APUC) has entered into an agreement to acquire the remaining 40% of a 400 MW wind power portfolio in the U.S. from Gamesa Wind US LLC for total consideration of approximately $117 million.
The 400 MW wind portfolio consists of three facilities: the 200 MW Minonk wind farm in Illinois, 150 MW Senate wind farm in Texas and 50 MW Sandy Ridge wind farm in Pennsylvania. APUC currently holds a 60% controlling interest in the projects, which were originally acquired through a newly formed partnership whose original members included Algonquin, Gamesa and certain tax equity investors.
APUC has been the majority owner and manager of the projects since commercial operation was achieved in 2012; therefore, the company notes no additional ongoing management or administrative costs are expected to be incurred. Gamesa will continue to provide operations, warranty and maintenance services for the wind turbines and balance-of-plant facilities under 20-year contracts.
"We have been pleased with the performance of these assets over the past year, and the acquisition of the balance of these three wind generating facilities adds additional accretive, low-risk earnings and cashflow to APUC," comments APUC CEO Ian Robertson.
The acquisition is expected to close in early 2014 following regulatory approvals.