FORT MILL, S.C. - Alternus Clean Energy, Inc. (NASDAQ: ALCE), a transatlantic clean energy independent power producer, announced today the signing of definitive agreements to acquire an operating portfolio of over 80 megawatts peak (MWp) across the United States. The $60 million transaction includes existing project debt and is slated for completion by the end of the second quarter of 2024.
The portfolio comprises 33 solar projects distributed over eight states, with an average remaining contract term of over 12 years with 16 different counterparties, including creditworthy entities like Duke Energy (NYSE:DUK). This acquisition is expected to generate an average annual revenue of $6.7 million and operating income of $5.1 million, before improvements.
CEO Vincent Browne stated that this acquisition is a strategic step in the company's expansion in the U.S. market and aligns with their goal to achieve 3GW of operating projects in the next five years. He highlighted that the portfolio will immediately contribute to the company's revenue and earnings, bolstering its financial performance.
This move follows Alternus's strategic divestment of non-core projects in Poland and the Netherlands in late 2023 and marks a pivot towards the U.S. renewable market. The acquisition nearly triples Alternus's operational projects in the U.S. to over 120MWp.
The closing of the acquisition is subject to certain conditions, including the restructuring and assumption of the existing debt. More details will be available in the company's Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.
The information in this article is based on a press release.
InvestingPro Insights
As Alternus Clean Energy, Inc. (NASDAQ: ALCE) embarks on a significant expansion in the U.S. renewable energy market, recent performance metrics provide a broader context for evaluating the company's market position. Over the past week, ALCE has seen a price total return of 7.48%, indicating a recent upswing in investor sentiment. However, a longer-term view reveals a more challenging landscape, with a 1-year price total return of -96.7%, placing the current price at just 2.97% of its 52-week high.
The company's trading volume stands at an average daily volume of 0.6 million USD over the past three months, reflecting investor activity and interest in the stock. These figures suggest a period of volatility for ALCE, which could be attributed to broader market trends or company-specific events.
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