Tuesday, October 17, 2006
Clipper Windpower could be take-out target in wind space, sources say
Clipper Windpower could be take-out target in wind space, sources say
mergermarket
Story Clipper Windpower, a California-based wind turbine manufacturer and project developer, could be a target in an increasingly active wind energy space, industry sources said. A spokesperson for Clipper Windpower, which is listed on London’s AIM exchange, declined numerous requests for an interview and for company comment.
An industry banker said that Clipper Windpower is a takeout target, and that potential acquirers could come from outside the space. For example, an acquisitive industrial manufacturing company like AMETEK or Danaher, both listed companies based in Pennsylvania, could be logical, the banker said. But since Clipper only recently went public, valuations may be too high at the moment, the banker said.
In September 2005, Clipper made its debut on AIM with a market cap of GBP 180m. Today it is valued at GBP 540m, or USD 1bn.
Clipper is an unusual company, an industry lawyer said, as it both develops wind generation projects and manufactures turbines. He said a potential acquirer would have to be interested in both aspects.
This month, FPL agreed to acquire Clipper’s Iowa-based, 100 megawatt Endeavor Wind Project. And in July, Clipper and BP Alternative Energy signed a strategic alliance for a long-term supply agreement and a joint development for five wind projects in the US. The company has also sold wind projects to PPM Energy and MidAmerican Energy in the past.
The industry lawyer noted that large utility companies gain greater tax benefits than smaller companies from having renewable energy projects in their portfolios. He declined comment on potential bidders, but said listed, Florida-based FPL and listed, Texas-based TXU are big players in the wind space. He also noted that Clipper has a joint venture with BP.
Additionally, an industry observer said he would not be surprised if Clipper were targeted, as the company recently introduced the 2.5 megawatt “Liberty” turbine. Turbines have traditionally generated 2 megawatts of power. The observer said there are many merchant developers interested in wind generation assets, and cited Goldman Sachs’ acquisition of Horizon Wind as an example of interest from financial players.
GE Energy Financial Services also has an interest in Clipper, as it has granted the company construction loans and will help bring in strategic investors, according to Kevin Walsh, managing director of the GE division. Walsh called the company “very promising” at a clean tech conference in September.
Clipper Windpower has offices in California, Colorado, Maryland, Mexico and the U.K. Clipper’s project development activities include approximately 6,000 MW of wind resource rights, with new project sites being actively pursued, according to the company.
by Heather West and Anjali Naik
mergermarket
Story Clipper Windpower, a California-based wind turbine manufacturer and project developer, could be a target in an increasingly active wind energy space, industry sources said. A spokesperson for Clipper Windpower, which is listed on London’s AIM exchange, declined numerous requests for an interview and for company comment.
An industry banker said that Clipper Windpower is a takeout target, and that potential acquirers could come from outside the space. For example, an acquisitive industrial manufacturing company like AMETEK or Danaher, both listed companies based in Pennsylvania, could be logical, the banker said. But since Clipper only recently went public, valuations may be too high at the moment, the banker said.
In September 2005, Clipper made its debut on AIM with a market cap of GBP 180m. Today it is valued at GBP 540m, or USD 1bn.
Clipper is an unusual company, an industry lawyer said, as it both develops wind generation projects and manufactures turbines. He said a potential acquirer would have to be interested in both aspects.
This month, FPL agreed to acquire Clipper’s Iowa-based, 100 megawatt Endeavor Wind Project. And in July, Clipper and BP Alternative Energy signed a strategic alliance for a long-term supply agreement and a joint development for five wind projects in the US. The company has also sold wind projects to PPM Energy and MidAmerican Energy in the past.
The industry lawyer noted that large utility companies gain greater tax benefits than smaller companies from having renewable energy projects in their portfolios. He declined comment on potential bidders, but said listed, Florida-based FPL and listed, Texas-based TXU are big players in the wind space. He also noted that Clipper has a joint venture with BP.
Additionally, an industry observer said he would not be surprised if Clipper were targeted, as the company recently introduced the 2.5 megawatt “Liberty” turbine. Turbines have traditionally generated 2 megawatts of power. The observer said there are many merchant developers interested in wind generation assets, and cited Goldman Sachs’ acquisition of Horizon Wind as an example of interest from financial players.
GE Energy Financial Services also has an interest in Clipper, as it has granted the company construction loans and will help bring in strategic investors, according to Kevin Walsh, managing director of the GE division. Walsh called the company “very promising” at a clean tech conference in September.
Clipper Windpower has offices in California, Colorado, Maryland, Mexico and the U.K. Clipper’s project development activities include approximately 6,000 MW of wind resource rights, with new project sites being actively pursued, according to the company.
by Heather West and Anjali Naik
