Ence Energía, S.L.U. has signed an agreement with Iberdrola Renovables de Castilla La Mancha, S.A.U. for the acquisition of its 90% stake in Puertollano solar thermal plant, for an amount that could reach up to Euro 145.8 million. The agreement is subject to IDAE, owner of the remaining 10% of the plant, not exercising its right of first refusal.
The agreed price amounts to Euro 139.5 million, excluding a cash balance of Euro 41.5 million. Additionally, the agreement defines an earn-out up to Euro 6.3 million.
With this transaction, Ence takes its first step towards diversification to other renewable technologies, which allows the Company to obtain similar profitability to that of its biomass generation plants. This acquisition will provide Encewith a stable annual EBITDA of Euro 18 million before synergies.
The solar thermal plant in Puertollano is adjacent to the new 46 MW biomass plant that Ence is building in the same location, in the former Elcogas site. This is an example of a successful transition from a fossil fuel generation model to renewable energy while keeping rural industrial employment, thanks to the use of surrounding agroforestry biomass as fuel.