Horizon Wind to be sold for $2.15bn

27 March 2007 – Bloomberg reports that EDP-Energias de Portugal SA, the country’s biggest electricity utility, agreed to buy Horizon Wind Energy LLC of Texas from Goldman Sachs Group Inc. for $2.15 billion. The purchase will more than double EDP’s wind-power production.

Horizon owns projects in 15 states with 559 MW of gross production capacity and has 997 MW under construction, Lisbon-based EDP reported in a filing.

Horizon will boost EDP’s capacity from wind to more than 3,800 MW by the end of this year from 1,600 MW in 2006. The acquisition will be financed by debt and proceeds from a tax equity partner, EDP said.

The final purchase price will be increased to adjust for capital spending, which is estimated at $600 million, EDP said. The Portuguese utility plans to complete the acquisition by the end of the second quarter.

EDP Chief Executive Officer Antonio Mexia was reported as saying the company plans to invest 2.63 billion euros to almost triple its wind-energy capacity through 2010 as it expands in Europe and the U.S. With the purchase of Horizon, EDP will invest an additional 3.5 billion euros and forecasts North America will represent 45 percent of its installed capacity for wind energy in 2010.