Israeli geothermal energy company Ormat Technologies Inc. (NYSE: ORA; TASE: ORA) today reported the acquisition of six assets in the US for $271 million.
The acquired assets include: Cove Fort geothermal power plant in Utah, which sells its clean electricity generation to the Salt River Project under a long-term agreement; Stillwater Hybrid geothermal and solar in Nevada, which consists of a geothermal binary unit, Solar PV plant, and solar thermal plant that sells its clean electricity under a long-term agreement to NV Energy; Stillwater Solar PV II in Nevada, which sells its electricity output to Wynn Las Vegas under a long-term deal; Salt Wells geothermal power plant in Nevada, which has a long-term deal with NV Energy; Woods Hill Solar PV Park - located in Windham County Connecticut, this Solar PV facility sells its electricity output to seven different off-takers under a long-term deal; and Greenfield development projects - Ormat has acquired the rights to explore and potentially develop two greenfield projects, one adjacent to the Cove Fort power plant, and the other in a high-potential geothermal resource area in California.
Ormat says these acquired assets have collectively generated an annual revenue of $35 million and an EBITDA of $24 million for 2020-2022. Ormat is committed to a series of value-enhancing growth initiatives for these assets.
Ormat Technologies CEO Doron Blachar said, "We are excited to announce this strategic acquisition, marking a significant milestone for Ormat as we expand our generating capacity portfolio and expand our footprint in the renewable energy sector. We are confident that this accretive acquisition, which carries approximately an 8x EV/EBITDA multiple (inclusive of the future planned enhancement and optimization but excluding the Cove Fort expansion), will support both our short and long-term growth plans, further leveraging our unique core capabilities to maximize the efficiency and output from these power plants' energy sources, strengthening our financial position, and delivering meaningful value to our investors."
He added, "This transaction demonstrates our commitment to environmental stewardship, economic growth, and a greener, more sustainable future for all, aligning seamlessly with our business strategy of pursuing accretive M&A transactions alongside organic growth."
Ormat's share price is currently 1.29% lower on Wall Street at $66.46, giving a market cap of $4.005 billion.
In March, Ormat raised $300 million on the NYSE, for general corporate purposes, including working capital and capital expenditures, and for potential acquisitions, including complementary businesses, technologies or assets.
Published by Globes, Israel business news - en.globes.co.il - on October 23, 2023.
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