MEDIA INFORMATION - media enquiries to Sam Dabbs - 07050 108985
5 March 2007
The renewable energy sector is set to undergo a major consolidation in 2007 as mainstream utility companies snap up smaller, privately owned businesses, according to Clearwater Corporate Finance.
Clearwater’s head of research, Constantine Biller predicts the renewables sector will become a hotspot for mergers, acquisitions and investment. “Groups such as Acciona, AES, EDF, Endesa, Enel, Iberdrola and RWE are all looking to expand their renewable generation capacity and establish a firm foothold in the market,” he explains.
“At the same time specialist renewable energy providers such as Renewable Energy Corp and NTR's Bioverda subsidiary are keen to extend their geographic coverage by acquiring companies in different locations.”
In February this year Bioverda announced a joint venture with Virgin to exploit bio-fuel opportunities with a particular focus on the US ethanol sector. At the same time they announced an investment in two 100-million-gallon corn-to-ethanol plants in Indiana and Tennessee and are actively looking for additional bio-fuel opportunities in North America and Europe.
Take-overs of renewable energy specialists during 2006 included the acquisition by Canada’s Nova Gold Mining Corporation of hydro-electric power specialist the Coast Mountain Power Corporation. Meanwhile the French company Theolia took over the German wind park developer Natenco and the Spanish building contractor Acciona acquired the Spanish wind farm developer Corporación Eólica CESA.
IMAP (the International Network of Merger and Acquisition Partners), a global partnership of advisory firms of which Clearwater is a member, says it is currently advising on over £1 billion worth of transactions in the renewables sector.
Biller adds: “Numerous mid-sized businesses are looking to float on the stock markets to raise funds for future acquisitions. Earlier this month Finavera Renewable floated on the Toronto Stock Exhange and in the process raised funds for small and mid-sized acquisitions in the wind and wave energy sectors.
“Meanwhile existing investors in the sector are taking advantage of the growing interest to place their assets up for sale. With the renewable energy market like to reach a peak in 2007, many are using the opportunity to sell their investments at high valuations and put their money into other next-generation technologies.”
Notes to Editors:
Clearwater Corporate Finance is the leading independent corporate finance house in the UK with an exceptional track record of over 300 completed transactions. We advise on all aspects of corporate finance transactions from mergers and acquisitions (M&As) and company sales to management buy-outs (MBOs). Our clients include management teams, owner-managers, private equity firms and large corporates.
We differentiate our service through our:
Independence – as we are not linked to any larger financial institution or consulting firm, we can provide objective advice without any potential conflict of interest.
Cross-border capability - the close communication between our four UK offices and the 60 member firms in IMAP, our exclusive network of international M&A firms, makes us a natural choice for cross-border transactions.
Sector expertise - our global sector teams offer clients a unique insight into M&A opportunities across the world.
Research and origination - with 25 per cent of staff focussed on these activities, we offer a market-leading capability to identify strategic opportunities for clients.
Excellence - we are committed to excellence in our service delivery and each client project is managed in a bespoke manner.
Commitment - as an owner-managed, partner-led firm, we guarantee a high level of partner involvement. We take a long-term view to build trust and lasting relationships.
The size of our team and the deals we advise on make us the most active independent corporate finance house in the markets in which we operate.
Press enquiries to:
Dabbs PR & Marketing
Tel: 01939 210503 or 07050 108985
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