Terra Firma’s RTR in €103m solar deal

Rete Rinnovabile, an Italian solar power business owned by private equity group Terra Firma, has acquired 31 solar plants from Acea, the listed Italian public utility. The deal has an enterprise value north of €100m.

Rete Rinnovabile (RTR), the Italian solar power business owned by London-based private equity firm Terra Firma, has acquired 31 solar power plants from Acea, the Italian public utility which is listed on the Milan Stock Exchange.

The acquired portfolio consists of plants based in Puglia, Campania and Lazio and adds 32.5 megawatt peak (MWp) to RTR’s existing installed capacity, bringing its total to 297.5 MWp. All the solar plants were connected between 2009 and August 2011 and they can supply more than 160,000 families annually.

The transaction has an enterprise value of around €103 million and is being funded through a combination of equity and a project finance facility provided by Mediocredito Italiano.

In a statement, RTR said the deal continued its policy of adding existing renewable energy plants which “allows for more efficient management due to economies of scale, the use of advanced systems, and the specific know-how developed by RTR”.

The latest deal further bolsters Terra Firma’s imprint in the renewable energy space. Since the beginning of 2012, it has made five renewable energy acquisitions with an aggregate value of €584 million and has added 222 megawatts of new capacity across its three renewable energy businesses – RTR, Infinis and Everpower.

The three firms have also invested a further €312 million to construct new power plants, developing an additional 206MW of installed capacity.

RTR was advised on the deal by Gianni, Origoni, Grippo, Cappelli & Partners as well as Moroni & Partners and K Studio Associati.

Terra Firma acquired RTR in March 2011 from Terna, the operator and principal owner of Italy’s high voltage grid. At the time, it had a total installed capacity of 144 MWp.