Enbridge company logos are seen at the company’s annual meeting in Calgary, Thursday, May 12, 2016. THE CANADIAN PRESS/Jeff McIntosh

Enbridge Inc. has bought Tri Global Energy (TGE), a U.S. renewable power project developer, for US$270 million in cash and assumed debt.

The company will also pay up to an additional US$50 million contingent on successful execution of TGE’s project portfolio.

Enbridge said Thursday that TGE is the third largest onshore wind developer in the U.S. with a development portfolio of wind and solar projects representing more than seven gigawatt’s of renewable generation capacity.

Enbridge chief executive Al Monaco said TGE will enhance Enbridge’s renewable platform and accelerate the company’s North American growth strategy.

“TGE’s significant development pipeline, coupled with our renewable capabilities, and existing self-power opportunities, make this a truly synergistic investment that further positions us to grow organically at attractive equity returns,” Monaco said in a statement.

The company said TGE’s development team will remain in place, ensuring the continuity of ongoing development activities.

TGE’s development portfolio includes 3.9 gigawatts of renewable generation projects it previously sold to operators, that will generate development fees and accretion to distributable cash flow per share in the first year following the acquisition.

Enbridge said the TGE team has developed and monetized over six gigawatts of utility scale renewable projects since its inception in 2009.

BMO Capital Markets analyst Ben Pham said in a note to clients that he believes Enbridge is using the money from recent asset sales to fund the transaction, and sees “potential for additional growth opportunities, including modest-sized M&A.”

BMO has an “outperform” rating on Enbridge.

This report by The Canadian Press was first published Sept. 29, 2022.

Companies in this story: (TSX:ENB)

The Canadian Press

News from © The Canadian Press, 2022. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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