First Reserve Completes Gamesa Solar Buyout

First Reserve Corp. has completed its EUR 261 acquisition of Gamesa Solar, the solar energy unit of Spain's Gamesa Corporacion Tecnologica SA. Gamesa Solar designs and builds solar photovoltaic plants, plus provides turn-key project management for third parties. Gamesa was advised on the deal by Citigroup. First Reserve says that it plans to invest EUR 600 million in the next four years in developing renewable energy assets.



First Reserve Corporation, the leading private equity firm specialising in the energy industry, has completed the acquisition of Gamesa Solar, the leading solar energy company in Spain, for a total consideration of EUR 261 million. Together with the acquisition in Italy of Ener3,which has an established track record of designing and building photovoltaic power plants, First Reserve has created a European renewable energy group with the ability to deliver solar capacity of up to 400MW in Southern Europe over the next four years. The group expects that two thirds of this capacity will be delivered to customers, on a turnkey project basis, while the remaining capacity will be developed on its own account.


Paolo Pietrogrande, who will become CEO of the new group said: “Gamesa Solar has delivered 40MW of photovoltaic projects and with an additional 50MW to be completed within 2008 is a major solar developer and turn-key contractor. Its leading position in the Spanish market provides an excellent foundation to exploit the attractive solar development opportunities that exist in Southern Europe and the Mediterranean. Over the next four years we will invest EUR 600 million into developing renewable energy generation assets.  Our international team has relevant experience in development, construction and operation of wing, small hydro, biogas and solar based power generation. We are delighted that 20 senior managers will be part owners of the new group, reflecting their commitment to its success.”


Mr Pietrogrande previously held positions as CEO of Enel GreenPower, Chairman of Atmos Holding and a director of Trinergy Plc, and has an established track record of successfully leading renewable energy companies.


Antonio Cavall