The purchase price was €4.9bn (£4.1bn), including the acquired unit’s cash. The agreement had been announced on 1st April 2021 and was completed on 31st December.
The acquisition covers most of the contracting business of the ACS Industrial Services division; nine greenfield concession projects under development or construction (mainly electrical transmission networks in Latin America); and the renewable energy project development platform.
Vinci said that it acquisition marks a major milestone in its strategy of creating a global leader in engineering, works and services focused on the energy sector, and of developing renewable energy concession projects. It said that, through this strategy, it intends to broaden its concession portfolio and extend its average maturity, while contributing to the environmental transition. Cobra IS’ business and geographical footprint are seen as complementing those of Vinci, through its delivery of turnkey engineering, procurement and construction (EPC) projects in the energy sector and with its strong local positions in the Iberian Peninsula and in Latin America.
Vinci said that its business model will benefit from Cobra IS’ expertise in developing renewable energy concessions. Vinci 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 15GW, mainly in solar PV and onshore wind. It sees additional opportunities from potential offshore wind projects.
The final purchase price of €4.9bn, financed entirely through Vinci’s available cash, equates to the enterprise value of €4.2bn initially agreed by the parties, plus €700m relating to cash held by the new unit and various adjustments.
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. Vinci will own 51% of this entity.
Xavier Huillard, Vinci’s chairman and CEO, said: “The integration of ACS’s energy business, including its renewable energy project development platform, is excellent news for Vinci.
“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.”