Norwegian investment manager firm Aker Horizons has agreed to buy a 75% stake in Irish developer Mainstream Renewable Power, effectively taking control of the company.
The deal values Mainstream at €1 billion, and includes a €100 million earnout for the developer in 2023.
It paves the way for a rapid acceleration of Mainstream’s plans to bring 5.5GW of new wind and solar PV assets to financial close by 2023.
The deal is expected to close in the second quarter of 2021.
Mainstream plans to launch an initial public offering (IPO) in the next two to three year, it stated.
It also plans to continue building out its roughly 10GW development pipeline.
Mainstream founder and chairman Eddie O’Connor explained the investment from Aker Horizons – sister company of offshore wind newcomer Aker Solutions – would enable the Irish developer to expand into new markets and drive deeper into existing ones.
The Irish developer will still be led by Mary Quaney, who replaced Andy Kinsella as CEO in August 2020.
Meanwhile, O’Connor will remain as chairman, retaining a significant minority interest in the business, and all existing shareholders will have the opportunity to reinvest ahead of a planned IPO.
Aker Horizons CEO Kristian Røkke added: “Through the acquisition of Mainstream, Aker Horizons will gain a platform to drive forward its plans in renewable energy and position itself in a growing market for hybrid projects.”
Mainstream would not comment on what conditions need to be met for it to secure the €100 million earnout included in the transaction.