La Caisse and Brookfield have entered into an agreement to acquire Canadian energy company, Boralex.
The deal will see Boralex shareholders receive $37.25 in cash per share, with the transaction valuing the energy firm at $9bn.
La Caisse, an institutional investor based on Quebec, Canada, is Boralex’s largest shareholder with approximately 15% of the outstanding common shares. The group has agreed to vote in favour of the transaction and to make a post-closing investment in Boralex, resulting in a pro forma interest of 30%.
The institutional investment from La Caisse and asset manager, Brookfield, aims to help advance Boralex in delivering affordable, renewable energy and enable it to meet growing demand driven by electrification, reindustrialisation, and digitalisation.
Executive vice-president and head of Québec at La Caisse, Kim Thomassin, said: “This transaction reflects our strong confidence in this renewable energy leader that is deeply rooted in Québec and well positioned to pursue growth across North America and internationally.”
Global chief investment officer, energy at Brookfield, Jehangir Vevaina, added: “We are excited to partner with La Caisse to accelerate the delivery of Boralex’s development pipeline in its next phase of growth.
“Combining Brookfield’s customer and supply chain partnerships, long-term capital, and deep operational know-how in renewables, with the strong foundation built by Boralex will help grow our presence in Canada and other attractive energy markets.”
Boralex will still operate independently following the close of the transaction. The deal been unanimously approved by Boralex’s board of directors and will provide immediate liquidity while positioning the group for its next phase of growth as a private company.
President and CEO of Boralex, Patrick Decostre, added: "This transaction brings in the right long-term partners for Boralex as we enter an accelerated growth phase requiring significant capital deployment and financial flexibility.
“On top of its financial capacity, Brookfield alongside La Caisse, brings complementary expertise to Boralex's skill set and will enable us to benefit from significant economies of scale and opportunities, particularly in procurement, energy commercialisation to large corporations and sharing of best practices within their different platforms.”
