Israeli "Enlight" acquires 90.1% of the American company Clenera for up to $ 390 million

Renewable energy company Enlight, managed by Gilad Yavetz, has signed an agreement to acquire 90.1% of the shares of the American company Clenera for up to $ 390 million - that is, at a company value of up to $ 430 million. The founders of the acquired company, its CEO and VP of Operations, will continue to hold 9.9% of Clinara shares and remain in office.
The final consideration that Analyte will pay is conditional on the milestones of the development of the photovoltaic asset portfolio owned by the acquired company, and the continued tenure of the CEO and VP of Operations for a period of three years after the completion of the transaction. Enlight will pay an initial consideration of $ 158 million in cash, and the balance of the consideration - in a maximum amount of $ 232 million - will be determined in accordance with a gradual and performance-based payment mechanism (Earn Out).
Klinara, based in Idaho, employs 80 people and is growing rapidly. The company has initiated, established and sold since its founding in 2013 projects for the production of electricity from solar energy, whose combined capacity is 1.6 gigawatts. The company promotes a portfolio of photovoltaic assets in 20 countries across the United States, and is focused on markets with high growth potential in the Midwestern United States as well as other countries in the Eastern United States.
Klinra has so far signed long-term agreements for the sale of electricity from the projects in the development portfolio, with a cumulative capacity of 700 megawatts, as well as energy storage agreements of 600 megawatts per hour. In addition, Klinera is conducting advanced negotiations for the signing of long-term agreements for the sale of electricity on projects whose aggregate capacity is 1 gigabit for an average period of 20 years from the date of commercial operation of the projects.
Enlight estimates that projects with a combined capacity of 200 megawatts will reach the construction phase during the first quarter of 2022 and projects with a combined capacity of 4-3.5 gigawatts will reach the construction phase in 2025-2022. The company notes that the portfolio of assets with an aggregate capacity of 3.9 gigawatts has been excluded from the transaction for regulatory reasons and will remain with its previous owners - Persoul, a company owned by Clinar (80%) and an American insurance company (20%).
Enlight intends to change the business model of Klinera, which has so far operated as a development company that sold the projects, and turn it into a company that initiates, establishes and operates solar energy projects, similar to the Enlight activity model in Israel and Europe. The company will finance Klinera's development activities through shareholder loans with an interest rate of 8.5%, and will be repaid before the distribution of profits to the shareholders according to their relative share in the company.
Enlight notes that electricity consumption in the US in 2020 without hydroelectric production amounted to 13% of the country's electricity consumption, so there is great potential for further growth in renewable energy production. US electricity consumption in 2020 amounted to 2.3% The country's electricity consumption, and it is estimated that by 2050 the solar sector will provide 47% of the renewable energy in the US. The company adds that in recent months the US has been promoting legislation designed to encourage massive investment in infrastructure and renewable energy.