Silicon Ranch Corporation announced today that it has signed an agreement to make Shell its largest shareholder.
As part of the agreement, Shell will acquire a 43.83 percent interest in Silicon Ranch from Partners Group, the global private markets investment manager, for up to $217 million in cash based on Silicon Ranch performance, with the possibility to increase its position after 2021.
Partners Group will continue to support Silicon Ranch through a newly issued junior debt financing simultaneous with the closing of the sale. The transaction is expected to close in Q1 2018.
Nashville-based Silicon Ranch will continue to operate under its existing management and the Silicon Ranch brand. The company owns approximately 880 megawatts of PV systems that are contracted, under construction, or operating in 14 states from New York to California, and close to 1 gigawatt more in its development pipeline.
The transaction will enable Silicon Ranch to accelerate its growth strategy by developing new projects, entering new markets, and expanding product offerings across its portfolio. The strategic partnership provides Shell a platform to establish a successful global solar business by aligning with a proven team in the second largest solar market in the world.
Marc van Gerven, Shell vice president of Solar, said, “Partnering with Silicon Ranch progresses our New Energies strategy and provides our U.S. customers with additional solar renewable options. With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the U.S., while expanding its global New Energies footprint.”
Matt Kisber, Silicon Ranch co-founder and CEO, said, “By pairing our solar expertise and trusted brand with the scale, resources, and brand equity of Shell, we are well-equipped to collaborate with our utility partners to provide comprehensive, win-win energy solutions for them and their customers.”