AQN Completes Renewable Energy Business Sale

Algonquin Power & Utilities Corp. (AQN), the parent company of Liberty, a diversified international generation, transmission, and distribution utility, has sold its non-regulated renewable energy business to an LS Power unit. AQN said in a media release the sale did not include its hydro fleet.

“We are pleased with the timely and successful completion of the sale of our renewable energy business”, Chris Huskilson, Chief Executive Officer of AQN, said. “This transaction, coupled with the recent sale of our 42.2 percent ownership stake in Atlantica Sustainable Infrastructure plc on December 12, 2024, achieves a pivotal step in our journey to transform AQN into a pure-play regulated utility with reduced complexity. Though there is still work to be done, passing this milestone should enable a greater focus on increasing the pace of this transition”.

The sale was agreed on August 9, 2024, for a total consideration of up to $2.5 billion excluding debt, consisting of $2.28 billion of cash at closing and up to $220 million of cash pursuant to an earn-out agreement relating to certain wind assets.

AQN said it intends to use the net proceeds from the transaction to pay down existing debt and strengthen its balance sheet.

J.P. Morgan served as its exclusive financial advisor for the transaction, while Gibson, Dunn & Crutcher LLP and Blake, Cassels & Graydon LLP served as legal advisors.

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