Atlantica expands UK footprint with wind asset acquisition
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LONDON – Atlantica Sustainable Infrastructure plc (NASDAQ:AY), a company specializing in sustainable infrastructure, has announced the acquisition of two wind assets in Scotland, marking its first operating assets in the United Kingdom. The transaction, which closed on March 22, 2024, involved a 100% equity interest stake in the wind facilities with a combined installed capacity of 32 megawatts.
The acquired assets, regulated under the UK green attribute regulation, are supported by renewables obligation certificates valid until 2033. Atlantica’s investment in the acquisition amounted to approximately $66 million, reflecting an Enterprise Value/EBITDA multiple of around 6.6 times. Notably, these assets have a strong operating history and are free of project debt.
This strategic move is expected to leverage Atlantica’s existing net operating loss carryforwards in the UK, potentially enhancing returns from the assets in the coming years. However, the company has made it clear that future performance of the newly-acquired assets is not guaranteed and that it does not commit to realizing any specific benefits from the acquisition.
In addition to GAAP financial measures, Atlantica’s press release includes non-GAAP financial measures such as EBITDA and Enterprise Value to EBITDA, which investors commonly use to evaluate a company’s performance without the effects of certain accounting items. The company believes these measures provide useful comparative tools across businesses and time periods. However, they should not be viewed as substitutes for IFRS measures.
This acquisition represents Atlantica’s commitment to growing its sustainable infrastructure portfolio, which includes renewable energy, storage, efficient natural gas, electric transmission, and water assets across North & South America and selected EMEA markets.
The information for this article is based on a press release statement from Atlantica Sustainable Infrastructure plc.
