Brookfield Renewable, a renewable energy company that owns and operates renewable projects, has acquired a 50% stake in X-ELIO, a company specialized in developing, constructing, financing, and operating renewable energy projects from private equity firm KKR. Following the transaction, Brookfield Renewable will own 100% of X-ELIO. The financial details were not disclosed. The transaction is expected to close during the second half of 2023.
Since KKR’s original investment in 2015 and Brookfield’s acquisition of a 50% stake in 2019, X-ELIO has benefited from over $2 billion of investment, enabling significant growth in the pipeline and an increase in development pace. Since its founding, x-ELIO has built or developed 3 GW of renewable projects across five continents.
KKR’s original investment in X-ELIO was made via KKR Global Infrastructure Investor Fund II. Brookfield Renewable will acquire the remaining stake in X-ELIO, which was not previously owned as a follow-on investment through the same flagship infrastructure fund that made the original acquisition.
Ignacio Paz-Ares, Head of European Renewable Power and Transition Investments at Brookfield Renewable, said: “X-ELIO is a business we know well following our initial investment, and we are thrilled to continue to support this leading global platform with significant growth ahead. This transaction aligns with Brookfield’s strategy as a leading owner, operator, and developer of renewables worldwide, driven by the incredible tailwinds for this sector.”
Tara Davies, Co-Head of European Infrastructure at KKR, said: “Since KKR’s initial investment eight years ago, we have helped X-ELIO transform into a global leader in sustainable energy development. As a firm, we have been a long-term investor behind the energy transition, and we are focused on continuing to identify the right opportunities to support companies with the right resources and seeking to play a leading role in this space. I’m proud of what we have been able to accomplish together, and wish X-ELIO continued success on this exciting journey.”
According to Mercom’s Q4 and Annual Solar Funding and M&A Report, 128 mergers and acquisition (M&A) transactions were recorded in 2022—the highest since 2010, including eight deals exceeding a billion dollars each.