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
- 0037 TED_DEEP_30_
- 0036 Prairie Lithium - Chad Glemser 30 Sec
- 0035 TED - Whitecap
- 0034 TED_NA Helium 2021
- 0033 Buffalo Potash Jared Small Footprint
- 0032 IWS Summer hiring rock trailer music
- 0029 Latus Viro updated Latus phone
- 0027 TED_NA Helium 2021_30
- 0025 Kendalls
- 0026 Buffalo Potash Quinton Salt
- 0023 LC Trucking tractor picker hiring mix
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0019 Jerry Mainil Ltd hiring dugout
- 0018 IWS Hiring Royal Summer
- 0014 Buffalo Potash What if PO
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0006 JK Junior
- 0004 Royal Helium PO Ad 02