This story was first published on 31 October 2017, and updated on 6 February 2018.
The acquisition means Innergex expands its renewables portfolio beyond its traditional markets in France, the US and Canada and increases its capacity by more than 40%, the company said.
Alterra owns 364MW of operational projects with a combined capacity of 825MW — including half of the 204MW Shannon wind farm in Texas and 26% of the 144MW Dokie 1 site in British Columbia.
It also fully owns the 350MW Foard City site, which is said to be at an "advanced stage", and has a majority stake in the 200MW Flat Top project — both of which are in Texas.
The developer also has interests in hydro projects in Canada and Iceland, solar projects in the United States and Icelandic geothermal projects.
Innergex, meanwhile, owns just over 1GW of installed capacity, spread across 52 operational power plants — mostly hydroelectric and wind projects.
All of its wind projects are in France and Canada, and include the 149.3MW Mesgi’g Ugju’s’n project in Quebec and the 210MW Nulki Hills site being built in British Columbia.
It also has stakes in prospective projects totalling 3.94GW, Innergex said.
Following the transaction, Innergex has an overall net power generation capacity of over 1.6GW, including projects being built. It aims to have a net installed capacity of more than 2GW by 2020.
"The geographic and energy sources profile of Alterra’s portfolio further diversifies Innergex’s asset base by adding operating hydro and wind projects in Canada, a large number of operating, under construction and prospective wind projects in the US and operating geothermal assets in Iceland," Innergex CEO Michel Letellier said.
Ross Beaty, Alterra’s executive chairman, added: "The combined company will have a lower cost of capital, stronger balance sheet, more diversified asset base and greater capacity to grow rapidly and efficiently."
The cash portion of the transaction was funded by a five-year C$150 million ($117 million) loan from Caisse de depot et placement du Québec, Innergex stated.
It also obtained commitments from investment banks TD Securities and National Bank Financial to shore up its credit facilities and upsize its revolving credit facility to C$700 million ($546 million) — up C$275 million ($214 million) from its principal amount.
The acquisition was first announced in October 2017, and completed in February 2018.
