Denmark's Orsted, the world leader in offshore wind, said it signed an agreement on Thursday to purchase a 100 percent equity interest in U.S.-based Lincoln Clean Energy LLC (LCE), which was the largest non-utility wind developer in the country last year, according to The American Wind Energy Association.
The agreement to acquire the company, which is a developer, owner and operator of onshore wind farms, was signed with global infrastructure investment manager I Squared Capital and management shareholders, Orsted said, placing an enterprise valuation on LCE of $580 million.
According to the statement, LCE has a portfolio of 513 MW of recently commissioned wind and solar assets, 300 MW of wind assets under construction, and more than 1.5 gigawatts of development projects for completion by 2022.
Orsted CEO Henrik Poulsen said the global market for onshore wind power was expected to grow significantly in the coming years, with the U.S. as a leading onshore wind market.
"The acquisition of Lincoln Clean Energy will provide a strong growth platform in the U.S., which is one of Orsted's strategic growth markets," he added.
Declan Flanagan, CEO of Lincoln Clean Energy, said the transaction would enhance the company’s project execution and growth trajectory.
LCE’s existing management team will continue to run the business, which will be in a separate unit outside of Orsted’s Wind Power business, according to the statement.
The transaction is subject to U.S. competition authorities' approval and is expected to close prior to the end of 2018.
By Hale Turkes
Anadolu Agency