Keeping alive a legacy of meaningful investments,
Kohlberg Kravis Roberts & Co.
) recently entered into a partnership with Acciona - a Spanish
infrastructure, energy, water and sustainable services provider. As
part of the transaction, Kohlberg Kravis will acquire a one-third
stake in Acciona Energía International (:AEI) - a part of Acciona's
energy arm - for €417million ($567 million). The deal is expected
to close by 2014 end.
AEI's portfolio comprises renewable energy assets of 2.3 gigawatts
across the U.S., Mexico, Australia, Italy, Portugal and South
Africa. The energy division of Acciona also known as Acciona
Energía will continue to own the remaining stake in AEI.
Kohlberg Kravis, along with AEI, intends to build the world's
largest renewable energy portfolio. Additionally, the partners are
also planning an international initial public offering (IPO) via a
YieldCo vehicle. The YieldCo vehicle will hold part of or the
entire asset of AEI. Per the deal, Kohlberg Kravis might have to
pay an additional €50 million based on the performance of the
Kohlberg Kravis is financing the deal from its global
infrastructure fund. The fresh infusion of capital will bring AEI's
enterprise value to €2.6 billion ($3.5 billion), divided equally
between equity and net debt. Upon completion, the deal will mark
one of the highest-valued transactions in the energy sector.
The renewable energy sector in Spain has been facing a downturn as
the regulatory authority recently removed subsidy from the sector.
Therefore, the stake divestiture will help Acciona sustain its
international business. Moreover, it will aid Kohlberg Kravis to
expand further into the global energy business platform.
Kohlberg Kravis has an impressive history highlighted by strategic
investments. Its recent mergers and acquisitions reflect
investments in diverse sectors ranging from energy to healthcare.
Going forward, the synergies from the acquired units will continue
to support its top-line growth.
Kohlberg Kravis currently carries a Zacks Rank #2 (Buy). Other
investment mangers worth considering include
Woori Finance Holdings Co., Ltd.
Ameriprise Financial, Inc.
Artisan Partners Asset Management Inc.
). While Woori Finance Holdings sports a Zacks Rank #1 (Strong
Buy), Ameriprise and Artisan Partners Asset Management hold the
same Zacks Rank as Kohlberg Kravis.
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