British asset manager Schroders is set to acquire 75% shareholding in renewable energy investor Greencoat for an initial consideration of $474m (£358m).
Established in 2009, Greencoat is one of the largest renewable infrastructure managers in Europe. It particularly invests in wind, solar, bioenergy and heat projects.
Currently, Greencoat operates around 200 power generation assets globally with a combined net generation capacity of more than 3GW.
As of 30 November 2021, the infrastructure manager has around $8.88bn (£6.7bn) of assets under management (AUM).
The acquisition will support Schroders in building a comprehensive private assets platform and bolster its position in sustainability.
As agreed, the purchase price of the deal will be settled in cash.
The deal also includes potential earn out up to £120m, subject to certain conditions. This amount is payable three years after the completion of the transaction.
Schroders also agreed to a series of options that will enable the company to acquire the remaining 25% shareholding over time. The purchase price of the stake will depend on a fair market valuation at the time of the option exercise.
Greencoat founder Richard Nourse said: “We are all delighted to have found a partner in Schroders who sees the potential of our business and believes deeply in our mission to build a global leader in renewables investing.
“We are extremely proud of what the brilliant team at Greencoat has together achieved, creating a market-leading renewables asset management firm in the UK and Ireland, a strong platform in Europe and an important expansion into the US.”
The deal is slated to close in the first half of next year.
Once it closes, Greencoat will become a part of Schroders’ private markets division called Schroders Capital and will be rebranded as Schroders Greencoat.