Enel from Italy and private equity group KKR are reported to be potential bidders for Sustainable Investments, a renewable energy firm based in Britain, according to sources familiar with the matter. The company, which could be valued at approximately $6 billion or more including debt, has garnered interest from major financial institutions and investors.
Non-binding offers were expected last week, with Bank of America and Canadian Imperial Bank of Commerce leading the sale process. Several other funds have also expressed interest in the acquisition.
The sources requested anonymity due to the confidential nature of the proceedings. When asked for comments, KKR, Bank of America, Cubico, PSP, OTPP, and Canadian Imperial Bank of Commerce declined to provide a statement. Similarly, an Enel spokesperson refrained from addressing "market rumours."
The renewable energy firm, Cubico, was established in 2015 through a partnership between two Canadian pension funds and Banco Santander SA, later becoming sole owners after acquiring the Spanish bank's stake in 2016. Cubico operates wind and solar farms globally, with 2.8 gigawatts of capacity across Europe, North and South America, and Australia, as well as concentrated solar power and transmission line technology operations.
Reportedly, Cubico recorded $783 million in revenue in 2023, with earnings before interest, tax, depreciation, and amortization (EBITDA) reaching $625 million. Investors and utilities have shown increasing interest in companies specializing in renewable energy amid the global energy transition, albeit recent challenges in the United States due to rising electricity demand for artificial intelligence and a resurgence in fossil fuel consumption.