Ørsted has gained a foothold in the US onshore wind energy sector with the acquisition of Lincoln Clean Energy.
The Danish offshore wind energy developer has announced an agreement with global infrastructure investment manager I Squared Capital and management shareholders to acquire a 100 per cent equity interest in Lincoln.
The deal has an enterprise value of £580 million, Ørsted said, adding that it would help the company to reinforce its position in the global renewable energy market.
Lincoln is a US based developer, owner and operator of onshore wind farms. Its portfolio of projects include 513 MW of operating assets, 300 MW under construction and a pipeline of over 1500 MW in development due to be completed by 2022.
“The global market for onshore wind power is expected to grow significantly in the coming years, and the US is a leading onshore wind market,” said Henrik Poulsen, CEO of Ørsted. “The acquisition of Lincoln Clean Energy will provide a strong growth platform in the US, which is one of Ørsted’s strategic growth markets. It is an investment case with healthy economics based on prudent assumptions about key value drivers and market developments.”
Lincoln’s existing management team will continue to run the business which will be a separate unit outside of Ørsted’s Wind Power business.
The transaction is subject to approval by the US competition authorities and is expected to close prior to the end of 2018.