Terra Firma buys US wind energy business for $350m

Guy Hands' private-equity firm Terra Firma has bought Everpower Wind Holdings in a deal worth $350m (£216m).

By Amanda AndrewsPublished: 8:49PM BST 26 Aug 2009
In a statement, the companies said the deal would help US wind energy business Everpower finance its development pipeline. Terra Firma is paying $200m now and has committed another $150m to the business over the next few years.
"We see significant investment potential in the fast-growing US renewable energy market and Everpower has both a strong management team and an attractive portfolio of projects," said Mr Hands, Terra Firma's chairman.
Everpower owns a recently completed project capable of producing 62 megawatts and has a near-term development pipeline set to provide 800 megawatts. President Barack Obama has made energy reform a priority since being elected, providing incentives for wind power development.
Sources said that Terra Firma had strong credentials in renewable energy and is well positioned to look at opportunities in the sector.
The private equity firm bought the business from renewable energy fund Good Energies and the Everpower management team, both of which are re-investing alongside Terra Firma.
Morgan Stanley and Climate Change Capital advised on the deal.
The acquisition is only the second by Terra Firma since its £4bn purchase of music business EMI in 2007.
The music group accounted for the vast majority of Terra Firma's €1.37bn writedowns this year, and Terra Firma was forced to inject extra capital into EMI twice in six months.
The other deal was the private equity firm's purchase of Consolidated Pastoral Company, Australia's second-largest beef producer, in March 2009 from gaming industry boss James Packer.