Vinci, a global player in concessions, construction and energy businesses, has completed the purchase of the energy business of Spanish civil and construction engineering giant ACS (including the renewables platform) in a deal worth €4.9 billion ($5.5 billion).

Announcing this yesterday (December 31), the French infrastructure giant said it was a major milestone in the group’s strategy of creating a global leader in engineering, works and services focused on the energy sector, and of developing renewable energy concession projects.

The final acquisition of ACS' energy business comes after the agreement was sealed on April 1 2021.
It covers most of the contracting business of the ACS Industrial Services division; 9 greenfield concession projects under development or construction, mainly electrical transmission networks in Latin America and the renewable energy project development platform.
Through this strategy, the Group intends to broaden its concession portfolio and extend its average maturity, while contributing to the environmental transition.
This acquisition offers strong growth levers:
*Cobra IS’ business and geographical footprint complement those of VINCI, through its acknowledged expertise in delivering turnkey EPC (Engineering, Procurement and Construction) projects in the energy sector and with its strong local positions in the Iberian Peninsula and in Latin America;
*Vinci’s business model will benefit from Cobra IS’ expertise in developing renewable energy concessions. It therefore intends to become a significant player in this sector, having identified new opportunities for the short and medium term representing eventually a total capacity of around 15 GW, mainly in solar PV and onshore wind, as well as additional GW from potential offshore wind projects.
A global player in concessions, construction and energy businesses, Vinci employs more than 217,000 people in some 100 countries.
Its financial strength will be a further advantage in accelerating the new unit’s growth as a long-term operator of renewable energy assets.
The final purchase price of €4.9 billion, financed entirely through Vinci’s available cash, equates to the enterprise value of €4.2 billion initially agreed by the parties, plus €700 million relating to cash held by the new unit and various adjustments.
ACS will receive an earn-out payment of €40 million for each GW of ready-to-build renewable energy capacity developed by Cobra IS over a period of 8.5 years, up to 15 GW, resulting in a maximum additional payment of €600 million.
Vinci and ACS have also finalised a joint venture agreement, providing for the creation of a new entity that will have the right to buy, at market price, renewable energy assets developed, financed, built and connected to the grid by Cobra IS.
As per the deal, Vinci will own 51% of this entity, which will be fully consolidated in its financial statements.
On the strategic buy, Vinci's Chairman and CEO Xavier Huillard said: "The integration of ACS’s energy business, including its renewable energy project development platform, is excellent news for us."
"With this strategic deal, we intend not only to build a global leader in engineering, works and services focused on the energy sector – in which Vinci already has extensive operations – but also, thanks to the long track record expertise that Cobra IS has developed, to accelerate our development in renewable energies, which will help us make a greater contribution to the environmental transition," he added.

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