Canadian power generation company Capstone Infrastructure Corporation is set to acquire a renewable project portfolio of 544MW through the purchase of Renewable Energy Developers (ReD).
Capstone has inked a definitive agreement with ReD to acquire the stakes in latter in a deal worth C$70m ($66.4m) forming a combined company.
Following the execution of the agreement, existing Capstone shareholders and ReD stakeholders will own 80% and 20% ownership combined company, respectively.
Meanwhile, the portfolio of 544MW power capacity includes installed capacity of 465MW and the remaining 79MW pipeline of contracted development opportunities in Canada.
Commenting on the alliance, Capstone president and CEO Michael Bernstein said that the agreement forms a combined entity comprising ReD’s operating wind power facilities and development pipeline and team, and Capstone’s sizable Canadian power portfolio, financing capability and broad network of relationships in Canada and internationally.
"In addition, by combining our companies, we will further bolster Capstone’s ability to successfully source, pursue and execute earlier-stage power opportunities," added Bernstein.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThrough this agreement, Capstone extends its renewable power portfolio in Canada with additional 95MW wind power facilities in Nova Scotia and Ontario.
In addition, Capstone has secured an option to obtain 20-year power purchase agreements for 35MW wind power projects currently under development in Nova Scotia, Ontario, Saskatchewan and Quebec, alongside an option to acquire 44MW in wind power projects with PPAs in Ontario.
ReD president and CEO Jeffrey Jenner said: "By combining Capstone and ReD, we are creating a unique company with almost 550MW of operating and contracted power development assets in Canada."
