Blue Sphere completes acquisition of multiple biogas facilities in Italy
Blue Sphere Corp., a waste-to-energy deveoper, has completed the acquisition of four operating biogas facilities in Italy.
Blue Sphere has acquired 100% of the stock of Agricerere, Agrielektra, Agrisorse, and Gefa.
Individually, each fully operational facility generates 1MW/h of electricity which is sold to Gestore del Servizi Energetici GSE, a state-owned company that promotes and supports renewable energy sources in Italy, under a power purchase agreement (PPA) that runs through 2027.
Shlomi Palas, Blue Sphere CEO, says that with the acquisition of the Italian plants, the company has fulfilled all of its goals for 2015.
‘We are very excited to complete these acquisitions as they represent major milestones and proof of concept in the execution of our model of acquiring, building, and operating waste-to-energy projects around the world,’ says Palas.
The four biogas facilities combined are expected to generate approximately €8.4 million in annual revenue, and will generate a minimum of €3.76 million in annual EBITDA.
The annual EBITDA of each biogas facility is guaranteed by Austep, Blue Sphere’s operating partner and a global expert in waste-to-energy technology and management.
The Austep financial guarantee is further backed by an insurance policy underwritten and issued by a leading insurance provider.
Pursuant to its agreements with Austep, Blue Sphere expects to receive the annual guaranteed EBITDA, and Austep will receive any revenues in excess of the guaranteed EBITDA.
The enterprise value of these four facilities as stated by Innovatec is approximately €24 million.
Blue Sphere paid €5.2 million plus closing costs to acquire all four biogas facilities, including the assumption of certain debt associated with the acquisition of each facility.
Fifty percent of the cash component of the purchase price plus closing costs was paid at closing, with the balance due three years from the closing date.
Blue Sphere was provided with €2.9 million of capital from Helios Energy Investments to complete the acquisitions, which represent only four transactions of a pipeline of twenty-five biogas facilities that the company is evaluating for acquisition in Italy alone.