The Company is Looking at Buying a Further 25 Italian Biogas Plants : US Waste to Energy Firm Blue Sphere Acquires Four Italian Biogas Plants
Charlotte, North Carolina based waste to energy project developer, Blue Sphere Corp. (OTCQB: BLSP) has completed the acquisition of four operating biogas facilities in Italy through its wholly-owned subsidiaries.
The company said that it has acquired 100% of the stock of Agricerere, S.R.L., Agrielektra, S.r.L., Agrisorse, S.r.L. and Gefa, S.r.L.
Individually, each fully operational facility is said to generate 1 MW of electricity which is sold to Gestore del Servizi Energetici GSE, S.p.A., a state owned company that promotes and supports renewable energy sources in Italy, under a power purchase agreement (PPA) that runs through December 31, 2027.
The four biogas facilities combined are expected to generate approximately 8.4 million Euros ($9.2 million) in annual revenue and a minimum of 3.76 million ($4.1 million) in annual EBITDA.
The company explained that the annual EBITDA of each biogas facility is guaranteed by Austep, S.p.A, its operating. The Austep financial guarantee is further backed by an insurance policy underwritten and issued by a leading insurance provider.
Pursuant to its agreements with Austep Blue Sphere said that it expects to receive the annual guaranteed EBITDA, and Austep, S.p.A. will receive any revenues in excess of the guaranteed EBITDA.
The enterprise value of these four facilities as stated by Innovatec, S.p.A, was said to be approximately 24 million Euros ($26.4 million).
However, Blue Sphere said that it paid 5.2 million Euros ($5.7 million) plus closing costs to acquire all four biogas facilities including the assumption of certain debt associated with the acquisition of each facility.
Half of the cash component of the purchase price plus closing costs was paid at closing, with the balance due three years from the closing date. Blue Sphere secured 2.9 million Euros ($3.2 million) of capital from Helios Energy Investments to complete these acquisitions.
According to Blue Sphere these acquisitions represent only four transactions of a pipeline of 25 biogas facilities that it is evaluating for acquisition in Italy.
It added that through these transactions it has developed a network of brokers, consultants, legal and accounting experts that will allow for further expansion into the European marketplace.
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