KKR secures 80% stake in Spain's Gestamp Solar

Global investment firm KKR has secured an 80% stake in Spanish solar developer Gestamp Solar in a deal that both parties feel offers an ideal opportunity for the Gestamp brand to expand further throughout the PV sector.

A subsidiary of Gestamp Renewables, Gestamp Solar has around 300 MW of solar PV capacity under its belt in 18 countries. The company’s pipeline amounts to 2.2 GW, with Gestamp Solar eager to have 2.5 GW of installed capacity by 2020.

To achieve this goal, KKR has invested an undisclosed amount to secure 80% of Gestamp Solar, which has a total enterprise value – including debt and equity – of around $1 billion.

The deal is expected to close before the end of 2015, subject to regulatory approvals, with Bank of America Merrill Lynch acting as financial advisor for Gestamp Solar.

"We feel that this alliance between a well-established industrial group like Corporacion Gestamp and a leading global investor like KKR creates a winning formula for our respective companies," said Gestamp Renewables president Jon Riberas. "We are very happy to announce this transaction, which provides a solid platform to ensure the continuing success of our solar business."

Head of European infrastructure at KKR, Jesus Olmos, added that now is an attractive time to invest in solar PV, adding: "Gestamp Solar will be a key platform for KKR, developing utility-scale solar PV on a global level and offers the opportunity to own development capabilities in solar PV complementary to our presence in operational wind and solar assets worldwide."