Investment Firm Buys Major U.S. Community Solar Provider
A New York-based infrastructure investment fund said it has completed its purchase of a community solar and battery energy storage business in a deal to expand the U.S. community solar market.
NOVA Infrastructure on August 16 said its acquisition of UGE International will forge a partnership “with UGE’s veteran management team with the goal of building the leading community solar and battery storage platform in the U.S. middle market.”
UGE is a solar operator and developer of rooftop and ground mount commercial, industrial and community solar energy solutions, operating solar and battery storage projects in 11 states. UGE has designed and built more than 500 MW of projects.
The companies on Friday said, “The deal reflects NOVA’s mission to invest in entrepreneurial, high growth businesses with strong infrastructure assets.”
NOVA on May 28 of this year agreed to acquire about 70% of the common shares of UGE, and said the deal has received security-holder and regulatory approval.
“Community solar represents a very fast-growing segment of the U.S. power generation market with strong regulatory tailwinds supporting UGE’s portfolio of long-lived assets,” said Chris Beall, co-founder and managing partner at NOVA. “UGE provides customers with attractive electricity rates under long term contracts that provide strong downside protection for investors. We have identified value-add initiatives that will accelerate growth in the UGE portfolio and drive strong cash flow generation.”
UGE is a solar operator and developer of rooftop and ground mount commercial, industrial and community solar energy solutions. The company, founded in 2010, develops, builds, finances, owns and operates solar and battery storage projects in New York, New Jersey, Maine, California, Pennsylvania, Oregon, Texas, Illinois, Maryland, Virginia, and Massachusetts. UGE currently has a portfolio of more than 12 operating and 81 advanced backlog projects in those states.
“NOVA committed acquisition capital as well as growth capital to support the expansion of the UGE platform and installed MW,” said Allison Kingsley, co-founder and partner at NOVA, which began operating in 2018. “We are grateful to the company’s shareholders for their support of NOVA’s acquisition of UGE and we thank the highly experienced team for their stewardship of the business. We look forward to growing the company in partnership with UGE and for the benefit of valued UGE customers and NOVA investors.”
Nick Blitterswyk, CEO of UGE, said, “NOVA is a thoughtful and value-added partner to UGE that will help us effectively and efficiently scale the business. We value NOVA’s experience working with companies of our size to undertake similarly significant and important growth initiatives.”
NOVA was advised in this transaction by Blank Rome LLP and Bennett Jones LLP, and UGE was advised by Mintz LLP and CP LLP.
—POWER edited this content, which was contributed by the Sloane & Company communications firm.