Vinci wraps up EUR-4.9bn buy of ACS' energy biz

French concessions and construction group Vinci SA (EPA:DG) this morning finalised its purchase of the energy business, including the renewables platform, of ACS Actividades de Construccion y Servicios SA (BME:ACS).

The final purchase price for Cobra IS stands at EUR 4.9 billion (USD 5.55bn), covered from Vinci’s cash on hand. It is equal to the enterprise value of EUR 4.2 billion agreed earlier by the parties, plus EUR 700 million for the target’s cash and certain adjustments.

The acquisition included most of the contracting business of the ACS Industrial Services unit, the renewables development platform and nine greenfield concession projects, mainly electrical transmission networks in Latin America, which are under development or construction. ACS will not be selling its Zero-E platform for renewables and 15 concessions.

Vinci said Cobra IS’ expertise in developing renewable energy concessions will support a new ambition of the buyer to become “a significant player” in this field. It has identified short- and mid-term opportunities to develop 15 GW across solar and onshore wind and the company is also eying some offshore wind projects.

Spanish civil and construction engineering giant ACS stands to receive up to EUR 600 million in earn-out payments over the course of the next eight and a half years, if the energy business develops up to 15 GW of ready-to-build (RTB) projects. These payments would be made at a rate of EUR 40 million per RTB gigawatt.

“With this strategic deal, we intend not only to build a global leader in engineering, works and services focused on the energy sector – in which VINCI already has extensive operations – but also, thanks to the long track record expertise that Cobra IS has developed, to accelerate our development in renewable energies, which will help us make a greater contribution to the environmental transition,” commented Vinci CEO Xavier Huillard.

Apart from the just completed acquisition, Vinci and ACS have agreed to form a 51/49 joint venture (JV) that will have the right to acquire, at market price, assets developed and built by Cobra IS.

(EUR 1 = USD 1.133)

Choose your newsletter by Renewables Now. Join for free!