Canadian renewable energy company Boralex has signed an agreement to acquire a 49% stake in three wind farms in Quebec from Caisse de dépôt et placement du Québec (CDPQ).

The three wind farms represent a total capacity of 296MW, and CDPQ’s 49% equity stake represents 145MW net installed capacity. Boralex already holds a 51% stake in the three wind farms.

According to the deal, Boralex has agreed to pay a cash consideration of $121.5m to CDPQ on closing, which may include a conditional consideration of nearly $4m. This will be subject to the settlement of certain future conditions that need to be met.

The wind farms that are part of the deal are Des Moulins I wind farm (136MW) in the Appalaches RCM, Des Moulins II wind farm (21 MW) in the Avignon RCM in Gaspésie and the 139MW Le Plateau I wind farm in the Avignon RCM in Gaspésie, all located in Quebec.

Equipped with Enercon turbines, the three wind facilities have long-term power purchase agreements (PPAs) in place with Hydro-Québec Distribution that will expire between 2032 and 2033.

Boralex president and CEO Patrick Lemaire said: “We’re very pleased to announce our acquisition of CDPQ’s stake in high-quality wind farms that we already own 51% of and have managed for over two years following our acquisition of Invenergy’s stakes in these assets.

“Operating these wind farms provided the expected synergies and has yielded results 10% better than we had expected in 2019.”

Completion of the deal is expected to take place this month, subject to standard closing conditions.

Upon completion of the deal, Boralex’s installed capacity will be 2,212MW.

Boralex vice-president and chief operating officer Patrick Decostre said: “This transaction strengthens our position in the wind industry in Canada and is perfectly aligned with the growth orientation of our strategic plan.

“Acquiring CDPQ’s stake will add significant cash flow for the coming years and a positive contribution to the company’s discretionary cash flow per share in the first year after the transaction closes. We also expect to generate additional operational and financial synergies in the coming years.”