North American Power & Utilities Deals*—Q1 2015
Quarter in review
“Despite the overall drop in first quarter deal activity compared to last quarter, we see deals being
accomplished throughout the industry landscape including regulated, renewable, and non-renewable
generation deals. Although we saw a significant drop in renewable deal activity compared to the fourth
quarter of 2014, we see strong interest in contracted renewable assets and renewable development
pipelines that will help to deploy and execute on the YieldCo business model.”
Jeremy Fago, US Power & Utilities Deals Leader
Key trends in Q1 2015
• This quarter, we saw a large decrease in the volume and value of deals greater than $50 million, when
compared with the previous quarter. However, the value of deals was slightly higher than the first
quarter of 2014, while volume remained the same.
• There were 7 deals greater than $50 million this quarter, compared to 22 the previous quarter and 7
during the first quarter of 2014.
• Total deal value decreased by 61% from the previous quarter from $17.4 billion to $6.8 billion.
• Strategic investors accounted for 87% of deals by value, up from 65% during the previous quarter. In
terms of deal type, corporate deals rose slightly to 74% of deals by value, up from 72% of deals by value
during the previous quarter.
• Inbound deals declined this quarter to 6% of deals by value from 8% the previous quarter.
• Renewable deals declined and represented a smaller portion of total deal value at 6%, down from 28%
the previous quarter.
• Average deal size increased 23% from the previous quarter from $790 million to $972 million.
• There was 1 mega deal this quarter (deal value > $1 billion), valued at $4.7 billion, compared with 4
mega deals in the previous quarter totaling $12.7 billion.
Q1 2015 vs. Q1 2014 comparison
• When compared to the first quarter of 2014, total deal value increased by 55% from $4.4 billion to $6.8
billion. Average deal size also increased by 55%, as compared to the first quarter of 2014.
Deals > USD 50 Million
All deals
Deals >USD 50 million
Period
Number
Number
Value
(USD million)
Average value
(USD million)
Q1 2014
34
7
4,385
626
Q2 2014
43
13
34,869
2,682
Q3 2014
43
12
11,089
924
Q4 2014
43
22
17,388
790
Q1 2015
46
7
6,804
972
By transaction value (USD million)
40,000
$34,869
35,000
30,000
25,000
$17,388
20,000
15,000
10,000
5,000
By Investor Group
$11,089
$6,804
$4,385
Q1 2014
Q2 2014
Q3 2014
Value (USD million)
By Transaction Type
13%
26%
74%
87%
Source: Thomson Reuters, S&P Capital IQ, PwC analysis
Strategic Buyer
Financial Buyer
Corporate
* North American power deals provides a summary of the most recent non-regulated power generation and regulated utility (electric, gas and water) transaction activity.
Assets
Q4 2014
Q1 2015
North American Power & Utilities Deals—Q1 2015
Rank
1
Deal Value of
Transaction
(USD million) Acquirer Name
4,731
Iberdrola USA, Inc.
Target Name
UIL Holdings Corporation
Corp or Asset
Corp
Strategic or
Financial
Strategic
Announced
Date
Deal Summary
2/26/15
US - On February 26, 2015 Iberdrola USA, Inc. (Iberdrola), a unit of Iberdrola SA, definitively agreed to
merge with UIL Holdings Corporation (UIL), a New Haven-based electric utility holding company, for
USD 52.75 per share, or a total value of USD 4.7 billion, including net debt, to create a newly listed US
publicly-traded company (NewCo). The consideration was to consist of USD 10.5 in cash per share
and USD 2.389 billion in NewCo shares. Upon completion, Iberdrola and UIL shareholders were to
own 81.5% interest and 18.5% stake of NewCo, respectively.
2/3/15
US - On February 3, 2015 Macquarie Infrastructure Company, a majority owned-unit of Macquarie
Group Ltd, definitively agreed to acquire the Bayonne Energy Center, a Bayonne-based gas-fired
electric power generation facility, ultimately owned by ArcLight Capital Partners LLC (ArcLight), for an
estimated USD 720 million. The consideration was to consist of USD 210 million in cash and the
assumption of USD 510 million in liabilities.
3/6/15
Florida Power & Light Company agreed to acquire CBAS Power, Inc., the owner of a coal-fired power
facility, from CBAS Power Holdings, LLC for USD 521 million on March 6, 2015. The deal is subject to
approval by the Florida Public Service Commission.
2
720
Macquarie InfrastructureBayonne Energy Center, LLC
Company
Asset
Financial
3
521
Florida Power & Light
Company
CBAS Power, Inc.
Asset
Strategic
4
340
Tennessee Valley
Authority
Choctaw Combined Cycle Power
Plant
Asset
Strategic
2/12/15
US - On February 12, 2015 State-owned Tennessee Valley Authority agreed to acquire the 764 MW
Choctaw gas-fired power facility from Quantum Choctaw Power LLC, a unit of Quantum Choctaw
Power Holdings LLC, for USD 340 million.
5
265
Canadian Solar Inc.
Recurrent Energy, LLC
Corp
Strategic
2/2/15
Canadian Solar Inc. agreed to acquire Recurrent Energy, LLC from Sharp US Holding Inc. for USD
265 million in cash on February 2, 2015. The deal is subject to regulatory approval.
6
175
Northleaf Capital
Partners Ltd
Ormat Technologies Inc.
Geothermal and Recovered
Energy Power Plants
Asset
Financial
2/5/15
7
53
Alaska Industrial
Development and
Export Authority
Pentex Alaska Natural Gas
Company, LLC
Corp
Strategic
1/28/15
8
47
TerraForm Power, Inc. Distributed Generation Solar
Power Plants
Asset
Strategic
1/7/15
9
38
Taykwa Tagamou
37.5% stake in Phase III Solar
Nation and Wahgoshig Projects in Northern Ontario
First Nation
Asset
Strategic
1/12/15
10
22
Crius Energy LLC
Corp
Strategic
2/17/15
US - On February 5, 2015 Northleaf Capital Partners Ltd of Canada agreed to acquire a 40% stake in
11 power plants located in Hawaii and Nevada, of Ormat Technologies Inc., a Reno- based owner and
operator of geothermal and recovered energy-based power plants, a unit of Ormat Industries Ltd, for
USD 175 million, via a privately negotiated transaction, in the formation of a joint venture.
Alaska Industrial Development and Export Authority (AIDEA) signed a letter of intent to acquire Pentex
Alaska Natural Gas Company, LLC for USD 53 million on January 28, 2015. As a part of the
transaction, AIDEA will acquire Fairbanks Natural Gas. The transaction is subject to consummation of
due diligence and approval of the Board of AIDEA.
On January 7, 2015 TerraForm Power, Inc. (NasdaqGS:TERP) announced the acquisition of 26 MW of
distributed generation solar power plants from SunEdison, Inc. (NYSE:SUNE) for USD 47 million in
cash. TerraForm Power, Inc. has funded the consideration with cash on hand and secured USD 24
million of tax equity financing secured from Barclays, Citi, and JPM Capital.
Taykwa Tagamou Nation and Wahgoshig First Nation signed a purchase and sale agreement to
acquire a 37.5% stake in Phase III Solar Projects in Northern Ontario from Northland Power Inc. for
CAD 46 million (USD 38 million) on January 12, 2015. The deal is subject to the achievement of
certain conditions and receipt of third party approvals.
US - On February 17, 2015 Crius Energy LLC, a unit of Crius Energy Trust, agreed to acquire the
entire share capital of TriEagle Energy, LP, a Woodlands-based provider of retail energy services, for
USD 22 million. The consideration was to consist of USD 19 million in cash and USD 3 million in units.
TriEagle Energy, LP
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