German renewable energy producer Encavis has confirmed ongoing discussions with KKR, a US private equity investor, regarding a potential acquisition.
The company said in a press statement: “The management board of Encavis confirms in response to current press coverage that it has been in contact with KKR with regards to interest in a potential transaction with the company.
“As the talks are at an early stage, there can be no assurance that a potential transaction will be proposed or consummated.”
The potential deal could value Encavis at more than €2bn, according to Bloomberg.
The company, listed on the MDAX of Deutsche Börse, [a stock index of companies listed on the Frankfurt Stock Exchange] has stated it will not provide further comments or respond to inquiries until a decision is reached.
Encavis operates as an independent power producer specialising in acquiring and managing onshore wind farms and solar parks across 12 European countries.
These renewable energy plants generate stable returns through either guaranteed feed-in tariffs or long-term power purchase agreements.
The company has a total generation capacity of 3.6GW.
Its recent activities include the commencement of construction on a 260MW solar plant in Bartow, Germany, by its subsidiary Encavis Asset Management, with commissioning expected in the summer of 2025.
In February 2024, Encavis expanded its portfolio by acquiring two solar parks in Andalucia, Spain, with a combined capacity of 139MW.
In September 2023, Encavis partnered with Danish company GreenGo Energy to develop a pipeline of solar projects in Germany, aiming for 500MW of capacity.
KKR's interest in Encavis aligns with its recent investments in the energy sector.
In December, KKR proposed to acquire Smart Metering Systems, a UK-based company offering utility connection, smart metering and energy management services, for £1.4bn ($1.79bn).
The private equity investor demonstrated its commitment to renewable energy in India by investing $250m in Serentica Renewables in May 2022 and a further $400m in November 2022 to support the company's clean energy capacity installation.
