Brookfield Renewable to acquire 50% of X-Elio from KKR and Acek

Brookfield Renewable Partners L.P. (TSX: BEP.UN; NYSE: BEP) together with its institutional partners will acquire a 50% stake in X-Elio through a 50/50 joint venture with KKR. Brookfield Renewable and KKR will hold joint governance of the X-Elio board.

As part of the transaction, Brookfield Renewable will acquire ACEK’s 20% stake and 30% of KKR’s stake in X-Elio for a total commitment in the range of US $500 million.

The transaction is expected to close in Q4 2019.

Madrid based X-ELIO is a global company specializing in the development, design, construction, maintenance and operation of photovoltaic plants with a presence in the United States, the Middle East, Japan, South Africa, Latin America (Mexico and Chile among others), Australia, Southeast Asia, Italy and Spain.

In February 2016, KKR Global Infrastructure Investors II acquired 80% of Gestamp Asetym Solar (Gestamp Solar) from Gestamp Renewables (Now ACEK Renewables) and renamed the company to X-ELIO. The transaction valued Gestamp Solar at a total enterprise value of approximately US $1 billion.

photo credit: X-ELIO

News Release

Brookfield Renewable and KKR to Partner for a New Growth Stage in X-Elio

Brookfield Renewable and KKR will own X-Elio through a 50/50 partnership
The transaction, subject to customary closing conditions, is expected to close in the fourth quarter of 2019
All amounts in U.S. dollars unless otherwise stated

MADRID, Spain and LONDON, July 03, 2019 — Brookfield Renewable Partners L.P. (TSX: BEP.UN; NYSE: BEP) together with its institutional partners (“Brookfield Renewable”) and KKR today announced a definitive agreement to form a 50/50 joint venture for X-Elio. Brookfield Renewable and KKR will hold joint governance of the X-Elio board. As part of the transaction, Brookfield Renewable will acquire Acek’s 20% stake and 30% of KKR’s stake in X-Elio for a total commitment in the range of $500 million.

Headquartered in Spain, X-Elio is one of the largest independent solar platforms globally with 273 megawatts of operating capacity, 1,413 megawatts under construction and a broader 4,800 megawatt development pipeline across major solar markets including Spain, the United States, Mexico, Chile and Japan. X-Elio also has a proven track record as a premier developer of solar assets globally having developed over 2,000 megawatts of capacity at strong returns.

Sachin Shah, CEO of Brookfield Renewable, said: “We are delighted to be partnering with KKR through this transaction and are pleased that we share a vision for X-Elio’s strong prospects as a solar development leader. This is a unique opportunity to invest in a high-quality portfolio of operating assets including a near-term pipeline of construction assets with an experienced management team, integrated development platform and best-in-class contracting capabilities. This investment allows us to grow our solar capabilities to include global solar development and offers another meaningful growth lever for our business.”

Tara Davies, Member and Head of European Infrastructure at KKR, commented: “We’re looking forward to working alongside Brookfield and building on our close relationship with X-Elio’s management to help the business progress to the next stage of its growth. Our continued commitment to X-Elio builds on our strong track record of developing renewable energy assets and investing behind the global renewable energy transition.”

Jorge Barredo López, CEO of X-Elio, said: “This announcement marks the beginning of an exciting new stage for X-Elio. Brookfield brings further global expertise and a depth of management and operating experience and I look forward to working with both Brookfield and KKR going forward. Acek has been pivotal to X-Elio’s story to date, and I would like to thank them for their commitment and support throughout these years.”

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2019.

Brookfield Renewable Partners

Brookfield Renewable operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals over 17,000 megawatts of installed capacity and an 8,000 megawatt development pipeline. Brookfield Renewable is listed on the New York and Toronto stock exchanges. Further information is available at https://bep.brookfield.com. Important information may be disseminated exclusively via the Brookfield Renewable website; investors should consult the site to access this information.

Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with over $365 billion of assets under management.

KKR:

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

X-ELIO:

X-ELIO (www.X-ELIO.com) is a company specialized in the development, construction, operation and maintenance of solar plants with a presence in the United States, the Middle East, Japan, South Africa, Latin America (Mexico and Chile among others), Australia, Southeast Asia, Italy and Spain. In 2018 it achieved a revenue in excess of €130M. The firm has accumulated experience in the construction of solar plants of more than 2GW, it currently has 23 PV plants in operation in 13 countries. The group is a global leader in renewable and sustainable energy, with a strong commitment to the reduction of greenhouse gases and the fight against climate change.

Contact information:

Brookfield Renewable:
Media: Investors:
Marie Fuller
Vice President – Communications
+44 (0)20 7408 8375
marie.fuller@brookfield.com

Divya Biyani
Director – Investor Relations
(416) 369-2616
divya.biyani@brookfield.com

KKR:
Alastair Elwen
Finsbury
+44 (0)20 7251 3801
alastair.elwen@finsbury.com

X-ELIO
Óscar Torres / Eva Tuñas
Kreab
+34 685 929 026 / +34 91 702 71 70
otorres@kreab.com /
etunas@kreab.com

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.