Soltech Energy, a provider of solar energy solutions, acquired a 53.3% stake in the Dutch solar energy company 365 Energie (365zon) for SEK115.7 million (~$12.32 million).
The acquisition amount is paid for with an initial cash portion of SEK57.85 million (~$6.16 million). After 12, 24, and 36 months, approximately SEK 25.7 million (~$2.74 million) / year can be paid in variable additional purchase consideration if set sales and profitability targets are achieved, which would give a total acquisition payment of SEK 192.8 million (~$20.53 million).
The acquisition of 365zon is financed entirely with its cash and with newly issued Soltech shares.
Soltech Energy has an option to buy up the remaining 46.7% after 2024 at a market valuation.
Soltech and 365zon’s assessment is that the acquisition will contribute approximately SEK 260 million (~$27.68 million) in sales during the year 2022 (nine months) with a positive operating profit of approximately 10%.
During the years 22-23-24, 365zon is expected to contribute more than SEK 1,200 million (~$127.58 million) in sales with an operating profit of 10%. Synergy effects, primarily in purchasing and logistics through this acquisition, are expected to positively affect sales and earnings throughout the Group. Oaklins assisted 365zon on the transaction.
According to Mercom’s 2021 Solar Funding and M&A report, M&A activity in the solar sector soared with 126 transactions in 2021 – the highest number of transactions ever recorded. Most of the transactions involved Solar Downstream companies.
Earlier this week, through Macquarie Green Investment Group Renewable Energy Fund 2 (MGREF2), Macquarie Asset Management entered into an agreement to acquire a 50% stake in Island Green Power, a UK-based renewable energy project developer. Island Green Power primarily focuses on developing utility-scale solar projects and has a formed pipeline in the UK and Spain.