Pattern Energy agreed to pay $132 million to acquire a 50 percent interest in the 180MW Armow Wind power facility in Ontario, Canada.
The deal expends over half of the $239 million the San Francisco-based power company raised last month through a 10 million share Class A stock offer. The Armow wind project began operations at the end of last year, is jointly owned with Samsung Renewable Energy and is under a 20-year power purchase agreement with the electric grid operator in Ontario.
The deal is expected to close in 45 days.
“The commitment to acquire Armow Wind, on the heels of our successful equity offering last month, demonstrates our ability to use our available capital for accretive projects,” Pattern president Mike Garland said in a statement. Garland added that the company plans to close another acquisition in the next few months from its right of first offer list, a pipeline that includes 11 projects totaling 942MW.
The Armow purchase expands Pattern's portfolio to 18 operating projects and one asset currently under construction. It owns and operates a wind portfolio generating a combined 2.6GW in the US, Canada and Chile. The company agreed in July to purchase the development rights of a 600MW wind project from SunEdison, as part of the bankrupt solar provider's efforts to shed assets.