Exelon Corp. plans to acquire John Deere Renewables in a transaction that will add 735 MW of renewable energy to the utility's generation portfolio, as well as an additional 230 MW worth of projects that are in advanced stages of development.
The acquisition is valued at approximately $860 million, with a provision for up to an additional $40 million upon commencement of construction on the advanced development projects.
Under the terms of agreement, Exelon will acquire John Deere Renewables' 735 MW of installed operating wind capacity spread across 36 projects in eight states. Approximately 75% of the operating portfolio is already sold under long-term power purchase arrangements. As part of the acquisition, Exelon also has the opportunity to pursue 1,468 MW of new wind projects that are in various stages of development, including the 230 MW in advanced stages of development.
‘We expect to see increasing demand for clean, efficient wind power at a national level and in the 29 states that already have a renewable energy standard,’ says John W. Rowe, Exelon chairman and CEO. ‘This acquisition gives Exelon a strong position in the wind generation business that adds diversity to our generation fleet and provides more options for future growth.’
The acquisition will become part of the Exelon Power division of Exelon Generation, which already includes more than 1,000 MW of owned and contracted renewable power, including wind, hydroelectricity, landfill gas and solar.
Exelon expects to close the transaction with John Deere Renewables in the fourth quarter of this year. Barclays Capital acted as financial advisor. Foley & Lardner served as legal advisors to Exelon, and McDermott Will & Emery advised for certain tax matters.
SOURCE: Exelon Corp.