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Ørsted to expand US operations with Deepwater Wind
Posted on Tuesday, 09 October 2018 13:11
Ørsted, billed as one of the world’s largest offshore wind operators, has reached an agreement to acquire Deepwater Wind of the US for around USD 510.00 million.
Closing remains subject to approval from the US competition authorities and is due before the end of 2018.
However, Ørsted is not expecting the addition of the target to change its earnings before interest, taxes, depreciation and amortisation guidance for 2018.
The transaction would create a leading US offshore wind platform as the two companies are slated to both merge their assets in the country to create a business with the most comprehensive geographic coverage and the largest pipeline of development capacity.
Deepwater Wind has a diverse portfolio of projects along the east coast with a total capacity of 3.30 GW, compared to Ørsted’s 5.50 GW across sites off the coast of Massachusetts, New Jersey and Virginia.
Following completion, the buyer is expecting to be able to deliver energy to seven states that have already committed to build more than 10.00 GW of offshore wind capacity by 2030.
Ørsted believes Deepwater Wind will increase its capital expenditure guidance from between DKK 16.00 billion to DKK 18.00 billion (USD 2.46 billion and USD 2.77 billion) to DKK 23.00 billion to DKK 25.00 billion.
The Denmark-headquartered acquiror is a leading developer of offshore wind farms, having installed capacity 5.10 GW in Europe with a further 3.80 GW under construction. It is expecting to have a capacity of up to 12.00 GW worldwide by 2025.
Ørsted, which employs around 5,700 staff and is listed on Nasdaq Copenhagen, generated revenue of DKK 59.50 billion in fiscal 2017.
Together with Deepwater Wind, the US operations will be named Ørsted US Offshore Wind and will be managed by the target’s current chief executive Thomas Brostrom.
News comes two months after Ørsted agreed to acquire Lincoln Clean Energy for USD 580.00 million and just one month following its GBP 4.46 billion sale of a 50.0 per cent stake in Hornsea 1 Offshore Windfarm to Global Infrastructure Management.
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