Announced in mid-June, SunEdison has this week closed the deal to acquire a 50% stake in Silver Ridge Power (SRP) LLC, a subsidiary of The AES Corporation. Having initially agreed to pay $165 million in June, the closing price rose by more than $10 million once all pre-closing adjustments were taken into consideration.
For SunEdison, the acquisition adds 336 MW of solar PV capacity to its rapidly expanding portfolio, plus a 40% stake in the Tenaska Imperial Solar Energy West Center, which is a 183 MW solar plant in California due for completion in 2016. The company will also manage and asset manage Silver Ridge Powers entire projects portfolio.
"SRP’s strong operating projects further enhance our growing renewable energy portfolio," said SunEdison CEO Ahmad Chatila. "We are looking forward to working with Riverstone, our joint venture partner in SRP, to unlock value from SRPs operating projects and those projects in development."
The acquisition of SRP is part of SunEdison’s growth strategy for 2014. Having endured a suppressed first quarter performance posting a net loss of $616 million the company has gone on a large-scale offensive, adding masses of MW capacity to its portfolio, most notably domestically but also in the rapidly emerging market of Chile.
Riverstone Holdings will, via an affiliate, hold the remaining 50% stake of SRP.