Revolve Renewable Power Corp, a Dublin-headquartered energy company recently listed on the Toronto Stock Exchange, has agreed an agreement to buy a business belonging to Centrica, owner of Bord Gáis Energy, worth €1.5m.
ReVolve agreed to acquire Centrica Business Solutions (CBS) Mexico for 33 million Mexican pesos, according to a statement released last week by the company in Canada.
CBS Mexico is involved in the distributed generation market in Mexico, focused on designing, installing and operating a range of different distributed generation solutions/projects across the premises of various industrial clients in the country.
The deal holds strategic importance for Revolve, transforming the firm from a developer of fully renewable energy projects into an independent power producer with recurring revenue and cash flow.
CBS Mexico’s assets being acquired include six operational rooftop solar projects and an operational combined thermal and power project with a combined capacity of 2.85 megawatts (MW).
The energy generated from these projects is sold under a number of fixed price power purchase agreements with industrial customers in Central Mexico.
The average remaining period of agreements is about eight years.
The projects were commissioned between 2019 and 2021 and are expected to generate revenue and earnings before interest, taxes, depreciation and amortization in excess of the equivalent of $400,000 and $300,000 per year, respectively.
The acquired assets also include a 3MW combined heat and power project, which is awaiting final permits before commencing commercial operations.
ReVolve chief executive Steve Dalton said the acquisition will fast-track the company’s distributed generation market strategy, moving it from purely development to power generation.