Australian remote and off-grid power specialist Zenith Energy has been snapped up by US investment giant KKR, in a deal reported to be valued at more than $A2 billion.
The Australian Financial Review reports that KKR, led by Sydney-based managing director Andrew Jennings, signed a deal to acquire Zenith that was shopped with guidance for $270 million EBITDA.
The deal followed a bidding battle between KKR, EQT Partners and CVC Capital Partners-backed DIF, to buy the company largely owned by Pacific Equity Partners, OPTrust and Foresight.
Unnamed sources quoted in the AFR claim KKR was the only party that had tabled a bid to buy 100 per cent of Zenith, with other bidders proposing to buy 50 to 70 per cent shares.
The Australian reports that deal involves KKR buying the majority of Zenith Energy, with management retaining ownership.
Renew Economy has sought confirmation and comment from Zenith Energy.
Zenith Energy has built up a roaring trade helping Australia’s resources industry to shift from costly and polluting gas and diesel-based power systems to microgrids centred around a mix of solar, wind and battery storage.
The company reported a couple of major project milestone at the start of June, with the delivery of the first of four wind turbines to the Bellevue Gold Project in Western Australia and the delivery of turbine blades to help power a rare earths mine, also in WA.
The Bellevue project, in WA’s Eastern Goldfields, is a 90 megawatt (MW) hybrid power system combining wind, solar, thermal generation, and battery storage, that will supply the mine with up to 80% renewables and the ability to operate in “engine-off” mode when conditions allow.
The 65 MW Mt Weld Hybrid Power Station, which is being developed by Zenith for Lynas Rare Earths, will combine wind, solar, gas, battery storage and synchronous condensers.
Another major Zenith project, Liontown Resources’ 95 megawatt (MW) Kathleen Valley remote micro-grid, combines a 16MW solar farm, a 17MW/19 MWh battery and 30 MW of wind capacity.
The Zenith sale comes amid a flurry of wheeling and dealing in the Australian renewable energy sector, with reports that AGL Energy is preparing to offload its stake in Tilt Renewables, while WestWind is also said to be up for sale, including the 49 per cent stake held by Shell.
In a statement shared with Renew Economy on Monday, Shell said onshore wind continued to be an important part of its strategy.
“We are actively looking for Australian onshore wind opportunities alongside progressing the Kondinin wind project in Western Australia,” a company spokesperson said.
