Brookfield buys out KKR at X-ELIO, Spanish solar firm

By Mark McSherry

Investment firm KKR said it agreed to sell its 50% stake in Spanish renewable energy company X-ELIO to its joint venture partner Brookfield Renewable of Canada.

Following the transaction, Brookfield Renewable will own 100% of X-ELIO.

Brookfield Renewable is the listed renewable power company of Brookfield Asset Management, the Canada-based alternative asset manager with $800 billion of assets under management.

A Spanish newspaper had reported that KKR was considering selling its stake in X-ELIO and a deal would value the company at about $2.7 billion.

Founded in 2005 and headquartered in Madrid, X-ELIO specializes in the development, construction, financing and operation of solar PV plants, storage and hydrogen projects worldwide.

Since KKR’s original investment in 2015 and Brookfield’s acquisition of a 50% stake in 2019, X-ELIO has benefited from over $2 billion of investment.

X-ELIO has built or developed 3 GW of renewables projects across five continents since it was founded.

It has built a strong presence across the top solar geographies in the world and is expected to have 3 GW of assets in operation, under construction or ready-to-build by the end of 2023 across Spain, Italy, the US, Australia, Japan and Latin America.

Ignacio Paz-Ares, Head of European Renewable Power and Transition Investments at Brookfield Renewable, said: “X-ELIO is a business we know well following our initial investment and we are thrilled to continue to support this leading global platform with significant growth ahead.

“This transaction is very aligned with Brookfield’s strategy as a leading owner, operator and developer of renewables worldwide, driven by the incredible tailwinds for this sector.”

Tara Davies, Co-Head of European Infrastructure at KKR, said: “Since KKR’s initial investment eight years ago, we have helped X-ELIO transform into a global leader in sustainable energy development.

“As a firm, we have been a long-term investor behind the energy transition and we are focused on continuing to identify the right opportunities to support companies with the right resources, and seeking to play a leading role in this space.

“I’m proud of what we have been able to accomplish together, and wish X-ELIO continued success on this exciting journey.”