ConEdison buys key assets of Juhl Energy
Renewable energy company purchases interest in three operating wind facilities, O&M business and nearly 500 MW pipeline of wind projects in the Midwest
Juhl Energy a provider of clean energy solutions, sold certain of its unit companies to ConEdison Development, one of America's largest owners and operators of renewable energy infrastructure projects.
"This transaction represents the culmination of our successes over the past eight years and the strength of our ongoing business plan," stated Dan Juhl, Chairman and CEO of Juhl Energy. "We are honored to have sold these particular components of our business to a renewable energy company such as ConEdison Development. We're confident that CED has the capacity to create further value from these assets, while we devote our future efforts to three key areas in which we believe we possess a clear leadership position," added Juhl.
"Our ongoing focus will be centered on projects under 20 MWs, and specifically, the development of our standardized 5 MW wind/solar hybrid systems designed for rural communities and municipal electric companies. In addition, through our engineering subsidiary, Power Engineers Collaborative, LLC, we are seeing a growing pipeline of wind, solar and combined heat/power projects in this same size range for industrial, college, and healthcare campuses. Finally, we expect to rebuild our asset ownership business with new acquisitions of renewable energy assets under 20 MWs across our areas of expertise," continued Juhl.
"With this transaction, our balance sheet has been substantially strengthened with a strong cash position and the extinguishment of all of our long-term debt," said John Brand, Chief Financial Officer of Juhl Energy, Inc. "We expect that the proceeds from this transaction will allow us to provide a return to our shareholders in the form of either stock repurchases or a dividend during 2017. Of course, this is subject to a full analysis of our tax obligations, ongoing working capital needs and approval of our board of directors," added Brand.
While specific details of the transaction have not been disclosed, highlights of the acquisition include:
‐ CED has purchased Juhl Energy's interest in a portfolio of three operating wind projects that have a total capacity of about 36 MW and are located in Minnesota and Iowa.
‐ CED has also acquired Juhl Energy Service Inc.'s operating and maintenance (O&M) services business. The O&M unit currently supports ten individual projects and associated personnel.
‐ CED also acquired Juhl Energy's interest in a pipeline of wind projects, primarily larger projects, consisting of about 500 MW in the Mid-West.
CED and Juhl Energy expect to continue to co-develop projects together over the next few years.