Etrion Corporation sells 60-MW Italian solar portfolio to Enel and Fondo Italiano per le Infrastructure for $85 million

Written By: Stratton Report
November 14, 2016


On November 14, Etrion Corporation announced the sale of its 60-MW Italian solar portfolio to Ultor S.p.A, a joint venture owned equally by Enel Green Power S.p.A. and Fondo Italiano per le Infrastrutture.

The transaction price was Euro 78 million ($85 million) with Ultor assuming related project-level debt of Euro 221 million ($241 million). In addition, according to Etrion, there are potential additional cash earn-out payments of up to Euro 24 million ($26 million) depending on the outcome of certain legal and regulatory proceedings.

Etrion’s Italian solar portfolio has an aggregate capacity of 60 MW across 17 sites. Etrion owns 100% of these projects and is the asset manager.

The Italian assets are carried on Etrion’s balance sheet at Euro 17.5 million ($19 million) as of September 30, 2016, and the firm expects to recognize a gain of up to Euro 53 million ($58 million) at closing of the transaction, excluding the earn-outs.

The closing of the transaction is expected to take place between December 2016 and January 2017.

Marco A. Northland, Etrion’s Chief Executive Officer, commented:

“We are pleased to sign a share purchase agreement with Ultor for the sale of our 60 MW Italian solar portfolio. Etrion started as a private solar developer focused on Italy and quickly became one of the largest solar power producers in the country through internal development and several acquisitions. Since entering Italy in 2009, we have collected over Euro 47 million in cash distributions from these projects. We have executed across the full project lifecycle – most recently optimizing production, reducing operating costs and extracting value through refinancing. The sale of the Italian assets demonstrates our ability to monetize solar assets at multiples of our original investment. The sale proceeds will allow us to accelerate our growth in Japan while, at the same time, deleveraging the company through repaying part of our corporate bond.”

Etrion was advised on this transaction by Greenhill & Co. International LLP and BonelliErede. Ultor was advised on this transaction by Lazard S.r.l. and Chiomenti.