Greek utility company PPC announced that it has entered into a binding agreement with Evryo Group, owned by funds managed by Macquarie Asset Management, to acquire its 629 MW renewable energy generation portfolio in Romania. 

The portfolio includes mainly wind farms (600 MW), but also 22 MW of hydroelectric power, 6 MW of storage in batteries and 1MW of solar capacity. The deal includes 145 MW assets under development as well.

The deal has a total value of approximately €700mn and the overall valuation is in line with previous market transactions, with the total amount subject to customary adjustments.

After the completion of the deal, the PPC Group expects to add an estimated Ebitda of €100mn annually.

"This acquisition represents a significant new step for PPC Group's overall growth strategy in Southeast Europe," said Georgios Stassis, chairman and CEO of PPC Group. 

"We accelerate the build out of renewables' generation in Romania by doubling our portfolio of RES in operation, and most significantly with wind and hydro, further diversifying our RES mix, with assets located in the most sought-after regions in Romania, with high wind speeds. Our regional strategy in renewables targets to power generation across attractive markets, with a diversified technology portfolio. Southeast Europe is an increasingly interconnected market, with converging power prices and, thus, value can be created from adjacent synergies in trading, supply and risk diversification."

PPC is already active in Romania’s supply and distribution markets and is planning investments in renewable energy capacities. It entered the Romanian market by taking over the supply and distribution operations of Italian utility company Enel in three (of the country’s eight) regions in October 2023. 

PPC Renewables said at the end of July 2024 when announcing the construction of a new 140 MW wind power plant in eastern Romania,  that it was operating at that time an existing portfolio of over 700 MW in the country. Upon completion, PPC Group's total installed renewable energy capacity in the country would reach approximately 850 MW, according to the same press release.

Thus, upon completion of the agreement, PPC's renewable energy portfolio in operation in Romania will roughly double to 1.3 GW plus 295 MW assets under development.

Closing of the transaction is expected to occur by the fourth quarter of 2024 and will be subject to certain conditions precedent customary for this type of transaction, including, but not limited to, clearance from the relevant antitrust authorities.

Citigroup Global Markets Europe AG and Euroxx Securities SA were financial advisors to PPC for the transaction, and Clifford Chance was the company's legal advisor.