Solarpack Acquisition: Key Details, Impact, and What Comes Next

EQT Infrastructure's acquisition of Solarpack marks a significant consolidation in the renewable energy sector. By securing a 96% stake in the Spanish solar power company, EQT aims to enhance its portfolio and streamline operations. This move underscores the growing importance of solar energy in the global renewable landscape, positioning EQT as a key player in the industry.

What Is Solarpack?

Founded in 2005, Solarpack specializes in the development, construction, and operation of large-scale solar photovoltaic plants. The company stands out in the market with its comprehensive approach to solar energy projects, offering end-to-end solutions from project development to asset management. Solarpack's unique selling points include its extensive experience in the sector, a strong commitment to sustainability, and a global presence that spans across Europe, the Americas, and Asia.

Who Acquired Solarpack?

EQT Group is a global investment organization known for its thematic investment approach and active ownership. The company focuses on private capital, infrastructure, real estate, and private wealth, investing in sectors like healthcare, technology, and industrial technology. With over 300 portfolio companies worldwide, EQT has a significant market presence and influence. The firm is dedicated to creating lasting value and sustainable growth, leveraging local knowledge and a value creation framework to drive innovation and industry transformation.

When Was Solarpack Acquired?

EQT Infrastructure completed its acquisition of Solarpack on November 25, 2021. This acquisition came at a time when the renewable energy sector was experiencing significant growth, driven by decreasing costs of power generation technology and increasing political support for sustainable energy solutions. The timing also aligned with a broader trend of heightened investor interest in companies contributing to the transition away from fossil fuels and combating climate change.

Why Was Solarpack Acquired?

• Market Expansion: The acquisition of Solarpack allows EQT to significantly expand its market presence in the renewable energy sector. Solarpack operates in Spain, Chile, and India, providing EQT with a foothold in these key regions. This strategic move enables EQT to leverage Solarpack's established operations and explore new opportunities for growth in both existing and new geographies.
• Technology Integration: Solarpack's expertise in solar photovoltaic technology and its vertically integrated approach to solar projects are valuable assets for EQT. By integrating Solarpack's advanced solar technologies and international pipeline into its portfolio, EQT enhances its capabilities in solar energy production and management, positioning itself as a leader in the renewable energy market.
• Competitive Advantage: Acquiring Solarpack strengthens EQT's competitive position in the renewable energy sector. Solarpack's established operations, market knowledge, and technological expertise provide EQT with a robust platform for sustainable growth and operational excellence. This acquisition marks EQT's first investment in the European solar PV energy sector, further solidifying its market leadership and ability to drive industry transformation.

Acquisition Terms

• Acquisition Price: EUR 26.50 per share, totaling approximately 881.2 million euros ($1.07 billion).
• Payment Method: Cash.
• Key Conditions or Agreements:  
  • Major shareholders holding approximately 51% of Solarpack's shares signed irrevocable agreements to sell their stakes.
  • The offer required a minimum acceptance level of 75% plus one share, including shares owned by the Vendor Shareholders.
  • Approval from Spanish antitrust authorities was necessary.
  • The National Securities Market Commission (CNMV) authorized the offer on October 27, 2021.
  • The total acceptance of the offer reached 96.04%, meeting the requirements to exercise the squeeze-out right.
  • Solarpack is expected to be delisted from the Spanish Stock Exchange by the end of December 2021.
  • CEO and co-founder Pablo Burgos agreed to sell his 8% stake and will remain in his position post-takeover.

Impact on Solarpack

The acquisition of Solarpack by EQT Infrastructure has led to significant changes in the company's operations and management. With the completion of the tender offer, EQT, through its investment vehicle Veleta BidCo, now holds a 96% stake in Solarpack, enabling it to exercise the squeeze-out right for the remaining shares. Consequently, Solarpack is set to be delisted from the Spanish Stock Exchange by the end of December 2021. Despite these changes, Solarpack's CEO and co-founder, Pablo Burgos, will remain in his position, ensuring continuity in leadership during this transition.

While the immediate effects on Solarpack's product offerings or services have not been explicitly detailed, the acquisition opens up potential for organic and acquisitive growth in new and existing markets. This strategic move is expected to enhance Solarpack's capabilities and market reach, particularly in the renewable energy sector. Employee and customer reactions have not been widely reported, but the overall sentiment appears cautiously optimistic given the potential for expansion and innovation under EQT's ownership. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.