Eurazeo today announced the closing of the sale of its entire stake in Reden Solar to a consortium led by Macquarie Asset Management and also comprising British Columbia Investment Management Corporation (BCI) and MEAG.
This sale was completed on the basis of an enterprise value of €2.5 billion and generated cash proceeds of €633 million for Eurazeo, representing a cash-on-cash multiple of 4.4x and an internal rate of return (IRR) of around 42%.
A shareholder since 2010, Eurazeo partnered with InfraVia in 2017 to help refocus the company’s business on solar PV projects, anticipating this market’s rapid growth.
Today, Reden Solar has an operational portfolio of more than 750 MW as well as a significant development pipeline. Reden Solar is one of the rare players in its sector with activities covering the entire solar PV value chain and across the entire development cycle of a solar PV project, from the initial phases up to the operation and maintenance of sites.
Eurazeo’s Real Assets team worked together with its partner InfraVia to support the company, bringing its long-standing experience in this sector and its expertise in platform management, structuring and expansion through a combination of organic and external growth.
Alongside Reden Solar’s management team leading this expansion phase, Eurazeo and InfraVia helped the company grow its operational portfolio eightfold and its EBITDA more than fourfold over the last five years. Backed by Eurazeo’s worldwide network, Reden Solar also extended its footprint across Southern Europe, and especially in Greece, Italy, Spain and Portugal, thereby bolstering its market positions.
In line with Eurazeo’s ESG strategy and assisted by the Real Assets team, Reden Solar has made strong environmental and social commitments. The company is now a leading player in the energy transition. In particular, the company develops projects for ground-mounted plants on land that is degraded or of limited value, thus pairing the installation of PV panels with agricultural production between and underneath the panels to rehabilitate the land.