SunEdison, TerraForma to acquire First Wind

Dive Brief:

SunEdison and TerraForm Power will acquire First Wind for $2.4 billion in a deal that will result in the world's largest renewable energy development company, Forbes reports. The deal means SunEdison will raise 2015 project installation guidance from 1.6-1.8 GW to 2.1-2.3 GW
TerraForm will acquire 521 MW of operating wind and solar power plants and raised 2015 dividend guidance to $1.30 per share, an increase of 44%.
SunEdison will purchase over 1.6 GW of pipeline and backlog projects, which have been added to TerraForm Power's call right project list and are expected to be operational in 2016-2017. Included in the transaction is an additional 6.4 GW of project development opportunities.

Dive Insight:

SunEdison's plan to acquire First Wind will create the largest renewable energy development in the world, and the company it expects to accelerate the rate of project development and realize significant growth opportunities by integrating First Wind's wind platform into its own global project development and finance platform.

"The acquisition of First Wind transforms both SunEdison and TerraForm Power into diversified renewable energy companies and will make SunEdison the leading renewable power plant developer in the world," said Ahmad Chatila, president and CEO of SunEdison. "We will be well-positioned to capitalize on the significant growth opportunities in the global wind power markets and drive returns to shareholders of both SunEdison and TerraForm Power."

SunEdison shareholders are expected to benefit from increased project development cash flow, asset management revenues, and dividend payments from TerraForm Power. The transaction also will accelerate the timing and enhance the visibility of SunEdison's receipt of incentive distribution rights from TerraForm Power, and increase the value of SunEdison's yieldco platform.

The transaction is immediately accretive to TerraForm Power and is expected to deliver $72.5 million in unlevered cash available for distribution.