Greenbacker Renewable Energy Company (GREC), a publicly registered, non-traded limited liability company, completed the acquisition of the businesses, assets, intellectual property, and employees of its external advisors, Greenbacker Capital Management LLC, Greenbacker Administration LLC and other affiliated companies. The acquired businesses and assets went to Greenbacker Renewable Energy Corporation, a GREC wholly owned subsidiary, allowing GREC to operate as a fully integrated and internally managed company, with its own executive management team and employees to support business and operations.
The internalization transaction will be paid via the issuance of more than 24 million Class P-1 GREC shares, with an aggregate value of $214 million, as well as in excess of 13 million newly issued shares of Class EO shares of GREC stock. Assuming Class EO shares are valued equally with Class P-1 shares, the transaction value would total more than $329 million.
Greenbacker Renewable Energy Corporation was launched in 2014 to invest in renewable energy power plants. Over the years, the company’s capabilities expanded to include technical asset management, procurement, construction management, and late-stage development of renewable energy projects.
“We believe that the benefits of this transaction will help us to build upon the robust platform that we have created, enabling us to pursue new and exciting prospects to create value for our shareholders,” said Charles Wheeler, CEO of Greenbacker. “Adding the funds management business into GREC will also allow us to continue raising and deploying capital in areas consistent with our mission, while expanding our ability to positively impact the important environmental and social challenges we face as a community.”
Wheeler added that the company’s goals include offering adaptable investment solutions, building partnerships and anticipating new opportunities. “This transaction will help us to achieve that vision,” he said.
Greenbacker Renewable Energy Company acquires and manages renewable energy and energy efficiency projects, as well as other energy-related businesses. The company invests in solar and wind facilities, and then sells power under long-term contract to counterparties such as utilities, municipalities, and corporations.