Atlantic Power Corp. (NYSE: AT) (TSX: ATP) has announced that it has entered into an agreement with Veolia Environnement SA to acquire all of the outstanding shares of Ridgeline Energy Holdings Inc., a wholly-owned subsidiary of Eolfi SA.
Ridgeline Energy currently has a wind and solar development pipeline of more than 20 projects in the U.S. totaling approximately 1,000 MW. Planned development expenditures in 2013 are focused on near-term opportunities where PPAs can be obtained quickly, including solar sites where investment tax credits remain available and construction could be completed as early as the first quarter of 2014.
The acquisition will increase the Atlantic Power’s ownership interest in the Rockland project to a 50 percent managing member interest from 30 percent, and add a 12.5 percent interest in Ridgeline’s 125 MW Goshen North project. As part of the acquisition of Ridgeline, the company will also acquire 100 percent of Meadow Creek, a 120 MW wind project currently under construction in Idaho, with a commercial operation date expected in December 2012.
As part of the acquisition, Atlantic Power will integrate Ridgeline’s team of over 30 employees.
The total cost of the acquisition will be approximately $88 million, subject to working capital adjustments.
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