Anaergia has agreed to divest two non-core US bioenergy facilities, in Charlotte, North Carolina, and Johnston, Rhode Island, in a deal that will remove around C$20 million of project-level debt from its balance sheet.
The company and its affiliates have signed a Master Purchase Agreement with IIF Anaergia HoldCo, LLC, known as North Sky. Under the deal, the buyer has acquired the assets of the Charlotte Bioenergy Facility and a 100 per cent interest in the entities that hold the Rhode Island Bioenergy Facility.
Anaergia says the sale supports its strategy of concentrating its portfolio on profitable growth opportunities and removing the negative earnings associated with non-core assets.
The Charlotte facility has not been operating, while the Rhode Island facility has been running below its expected capacity.
Anaergia has sold the Charlotte site outright and deconsolidated its interest in the Rhode Island facility. In return, it has received around C$9 million of equity in the buyer, a privately held company, which gives it a continuing stake in any future upside. The company expects the transaction to produce a non-cash gain on sale and to improve its earnings profile.
Assaf Onn, Chief Executive Officer of Anaergia, said: "This definitive agreement is a meaningful step in Anaergia's transformation. It addresses two non-core facilities, is expected to reduce project-level debt and improve our earnings profile. At the same time, the equity consideration allows Anaergia to retain potential upside through an ownership interest in the buyer. The Transaction enables our team to focus capital and management attention on the technologies, projects and markets where we see the strongest opportunities for profitable growth."
