Schroders to purchase majority stake in Renewable Energy Investor Greencoat

Published on: 23 December 2021 11:35 AM
The deal will enable Schroders in bolstering its position in sustainability.

A Brief Summary

Investment manager Schroders to acquire a 75 percent stake in renewables infrastructure manager Greencoat. According to Schroders, Greencoat operates between the US and European markets for renewable energy assets. Greeancoat will be known as Schroders Greencoat after the acquisition.

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Schroders, British asset management, is scheduled to buy a 75 percent stake in Greencoat, a renewable energy investor, for $474 million (£358 million). Greencoat, which was founded in 2009, is one of Europe's major green infrastructure managers. It focuses on wind, solar, bioenergy, and heat-related projects. Greencoat now operates more than 200 power generation assets around the world, with a total net generation capacity of more than 3GW.

The infrastructure manager has roughly $8.88 billion (£6.7 billion) in assets under management as of 30 November 2021. (AUM). Schroders will benefit from the acquisition as it develops a comprehensive private assets platform and strengthens its sustainable stance. The deal's purchase price will be paid in cash, as agreed.

A possible earn-out of up to £120 million is also included in the transaction, subject to certain conditions. This sum is due three years after the transaction is completed. Schroders also committed to a series of options that will allow the company to gradually purchase the remaining 25% stake. The stake's purchase price will be determined by a reasonable market valuation.

"We are very happy to have found a partner in Schroders who sees the potential of our business and believes deeply in our objective to establish a global leader in renewables investing," said Greencoat founder Richard Nourse.

"We are pleased with what the Greencoat team has accomplished as a group, building a market-leading renewables asset management firm in the UK and Ireland, a strong base in Europe, and a significant growth into the United States."

The transaction is expected to be completed in the first half of next year. Greencoat will be renamed Schroders Greencoat after it closes and becomes part of Schroders' private markets subsidiary, Schroders Capital.

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