SunEdison, TerraForm to buy First Wind for $2.4 billion

Posted Nov. 17, 2014, at 7:42 p.m.

Solar company SunEdison Inc. and unit TerraForm Power Inc. said they would buy First Wind for $2.4 billion to enter the U.S. wind power market.

SunEdison’s shares rose 6.6 percent to $17.70, while TerraForm shares rose 1.2 percent to $26.15 in after-market trading.

The deal comprises $1.9 billion in upfront payment and $510 million in earn-outs, the companies said.

Boston-based First Wind is operating or building renewable energy projects in the Northeast, the West and Hawaii, with a combined capacity of nearly 1,300 megawatts — enough to power more than 425,000 homes each year.

First Wind has been a major player in developing wind farms in Maine, with sites active and planned across northern, western and eastern Maine. It is a frequent target for environmentalists and regulators, and counts among its top executives a former high-ranking Baldacci administration official, Kurt Adams, who now sits on the University of Maine board of trustees.

The company is involved in at least six wind power projects in Maine.

SunEdison raised its 2015 installation forecast to 2.1-2.3 gigawatts from 1.6-1.8 gigawatts . TerraForm increased its 2015 dividend forecast to $1.30 per share from 90 cents.

TerraForm was created by SunEdison to own and operate its solar power plants. TerraForm went public in July.

The deal is expected to close during the first quarter of 2015, the companies said.

SunEdison’s share in the total consideration consists of an upfront payment of $1 billion and the earn-out portion.

TerraForm Power will acquire First Wind’s operating portfolio for an enterprise value of $862 million.

The Bangor Daily News contributed to this report.

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