'Scale up and accelerate': JP Morgan-advised IIF swoops for Falck Renewables

Deal agreed to buy 60% stake owned by Italian parent group as developer eyes expansion in sectors including floating wind

The plan is to delist Falck from the Milan stock exchange.
The plan is to delist Falck from the Milan stock exchange.Foto: AFP/AFP via Getty Images/NTB scanpix

An investment vehicle advised by JP Morgan has struck a deal to take control of Falck Renewables, in a move the wind and solar developer said would allow it to accelerate growth plans in the clean energy sector.

Infrastructure Investments Fund (IIF) reached an agreement to buy the 60% of Milan-listed Falck Renewables’ shares held by parent group Falck, the Italian family-owned industrial business that built the developer into a significant player in European green power.

IIF will pay €8.81 per share, valuing the business as a whole at about €3bn ($3.5bn). It will launch a mandatory cash tender for the remaining shareholding after the deal closes and plans to delist the company.

Falck Renewables CEO Toni Volpe, who will continue to lead the business under IIF, said: “This extraordinary transaction, which is happening at a time of great change in the renewable energy sector, will provide further support, resources, and momentum to our medium to long term growth plans. We are proud to have attracted a partner like IIF, who will allow the company to deliver on its ambitions.”

IIF chief investment officer Matthew LeBlanc said: “We recognise the commitment of the experienced and dedicated management team and employees, as well as their development of the strategy to scale up the pipeline and accelerate growth.”

Falck Renewables has a 1.3GW operating base, mainly in Europe but with a small presence in the US, and 3.5GW under management.

The Italian company has in recent months become active in offshore wind, as a partner of Orsted in Scottish floating wind bidding and through an alliance with BlueFloat Energy, also a partner in Scotland, to explore wider UK opportunities.
In its home market Falck and BlueFloat have formed a partnership to develop floating offshore wind projects off Italy, starting with a flagship 1.2GW array in the Adriatic Sea.
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Published 20 October 2021, 07:54Updated 20 October 2021, 07:58
EuropeFalck Renewables JP Morgan