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Ardian Is in Advanced Talks to buy ICG-Backed Green Firm Akuo, Sources Say

By Francois de Beaupuy and Pamela Barbaglia
A Solar panel at the Weesow-Willmersdorf solar park, operated by EnBW Energie Baden-Wrttemberg AG, in Werneuchen, Germany, on Tuesday, Aug. 2, 2022. The European Union seeking to double solar capacity to 320GW by 2025 and to hit 600GW by the end of the decadewhich would make solar Europe's biggest source of electricity, whereas today it's not even in the top five. Photographer: Liesa Johannssen-Koppitz/Bloomberg (Liesa Johannssen-Koppitz/Bloomberg)

(Bloomberg) -- French buyout firm Ardian SAS is in advanced talks to buy Akuo Energy SAS, a French solar and wind-farm developer part-owned by Intermediate Capital Group, people familiar with the matter said.

Ardian’s bid values the company at about $2.5 billion including debt, one of the people said, asking not to be identified discussing confidential information. The buyout firm has started due diligence and aims to reach an agreement as soon as December, the people said.

Deliberations are ongoing and there’s no certainty a transaction will occur, according to the people. The talks were first reported by news website GreenUnivers. Representatives for Akuo and Ardian declined to comment.

Akuo, which ended discussions with potential buyers more than a year ago amid disagreements over its valuation and strategy, needs funds to speed up projects in Europe and the US, President and co-founder Eric Scotto told Bloomberg News last December. The clean-power developer had €2.1 billion ($2.3 billion) of assets on its balance sheet at the end of 2023, according to its earnings report. 

Akuo — which is mostly owned by Scotto, another co-founder Patrice Lucas and ICG — said in May it planned to refocus its activities by selling some projects, pulling out of Australia and seeking a strategic partner for its African platform. The Paris-based company also pledged to optimize operational assets, and said it’s working on “the structuring of a sizable portfolio” of wind, storage and photovoltaic ventures in the US and Europe. 

Meanwhile, receding borrowing costs and falling solar-panel prices have given a breather to developers of renewable projects, which require large capital expenditure. That’s revived interest from investors who are seeking exposure to the sector amid growing demand for greener sources of power.

In May, Canadian asset manager Brookfield unveiled a €6.1 billion takeover plan for French renewable firm Neoen SA, while Energy Capital Partners and co-investors agreed to buy Atlantica Sustainable Infrastructure Plc for about $2.6 billion.

That same month, EQT AB offered to purchase Swedish wind developer OX2 AB for 16.4 billion kronor ($1.5 billion). KKR & Co. offered in March to acquire German renewable-power producer Encavis AG in a €2.8 billion deal. 

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