Energy giant Scottish & Southern Energy plc (SSE) has spent some £1 billion buying Airtricity, a renewable energy company that operates wind farms in the UK and Ireland.
Energy giant Scottish & Southern Energy plc (SSE) has spent some £1 billion buying Airtricity, a renewable energy company that operates wind farms in the UK and Ireland.
The deal means that SSE now generates almost 10,500MW of electricity and more than 1,900MW through its renewable energy interests, which include hydro, pumped storage as well as wind and biomass operations.
The terms of the deal include Airtricity’s portfolio of onshore and offshore wind energy projects in the UK, Ireland, Europe and China. Its UK developments include the proposed 483MW onshore wind farm in southern Scotland, which is at an advanced stage of development.
This deal is part of a strategy to make SSE generate more than 3,500MW of renewable energy by 2013. It will also help the group reduce the amount of carbon dioxide produced at its power stations.
Dublin-based Airtricity will continue to operate as a renewable energy business and led by its former chief operating office Paul Dowling, who becomes CEO.
SSE chief executive Ian Marchant said this deal was completed to a tight timetable. “Over the past few weeks, the Airtricity and SSE teams have worked well together to lay the foundations for future success.
“I am looking forward to working with Paul Dowling on the task of combining SSE’s and Airtricity’s renewable energy forces and creating an excellent platform for long-term growth that is sustainable in every sense,” he added.
SSE’s legal adviser was A&L Goodbody, led by partner Sheena Doggett, while Airtricity was represented by Lavery Kirby Gilmartin.
Doggett, who was supported by energy partner Kevin Feeney, said SSE was chosen as the preferred buyer for Airtricity following a competitive bid process.
“The deal demanded strong project management and legal expertise as well as commercial acumen across a range of legal issues, such as corporate, property, banking and employment,” she added.
“Of particular importance in the due diligence process was our experience and specialist expertise of the energy and natural resources group in advising on the various onshore and offshore windfarm projects in Ireland and Northern Ireland as well as electricity and renewable regulatory issues.”
Lavery Kirby Gilmartin, led by partners Neil Keenan and James Flynn, has advised Airtricity since it was established ten years ago.
“Airtricity is one of the great Irish corporate success stories and the value placed on it through this deal is testament to the vision and commitment of its founders and management,” Keenan said. “The combination of Airtricity and a major utility such as SSE will undoubtedly allow the company to continue to be a leading European renewable energy player.”
Airtricity is also developing wind farms in continental Europe and China as well as supplying electricity to commercial customers in Ireland.
