US-based solar and energy storage company Borrego has agreed to spin off and divest its development business to energy transition-focused investor ECP.
The company currently owns a pipeline of more than 8.4GW of solar capacity and 6.4GW/25GWh of energy storage capacity.
Borrego CEO Mike Hall said: “We are seeing tremendous opportunities in Borrego’s engineering, procurement and construction (EPC) and operations and maintenance (O&M) services.
“This sale ensures we can invest in our people and build the technology that will position them to capitalise on what will be a record-breaking decade for solar and storage deployment in the US.
“I am thankful for the incredible development team that I’ve had the pleasure of working with for the last 12 years.
“We are thrilled that we were able to find a partner with ECP’s industry experience, financial resources and reputation.”
ECP will operate the development business as an independent firm, which will be based in Lowell, Massachusetts.
The business’ current president Dan Berwick will serve as CEO of the company.
Borrego noted that it will continue to invest in its EPC and O&M businesses following the deal’s closure.
ECP partner Andrew Gilbert said: “Borrego’s development business owns a best-in-class track record and project pipeline.
“We are thrilled to be partnering with Dan and the team to help continue the company’s tremendous growth and success.
“We’re excited to join forces with Borrego’s development business to create ECP’s 11th renewable platform and fourth standalone solar platform.”
The financial details of the deal have not been disclosed by either company.
JP Morgan Securities served as an exclusive financial adviser to Borrego for the transaction.
Founded in 1980, Borrego works to expedite the development and delivery of large commercial, community solar and utility-scale solar and energy storage projects in the US.