Borrego Announces Spin Off and Sale of Development Business to ECP
May 25, 2022
Borrego, a leading developer, EPC and O&M provider for large-scale solar and energy storage projects throughout the United States, today announced that it has entered into a definitive agreement to spin off and sell its development business, including its project pipeline of over 8.4 GW of solar and 6.4 GW/25 GWh of energy storage, to ECP, a leading energy transition-focused investor with an almost two decades-long reputation in the electricity, renewable and sustainable solutions sector.
Upon the completion of the transaction, ECP will operate the development business as an independent company. The business will be headquartered in Lowell, Mass., and will be led by the current development team as they continue to execute on the long-term business strategy in partnership with ECP. Dan Berwick, currently President of the development business, will become CEO.
"Borrego's development business owns a best-in-class track record and project pipeline. We are thrilled to be partnering with Dan and team to help continue the company's tremendous growth and success," said Andrew Gilbert, partner at ECP. "At ECP, we believe the opportunity set in sustainable infrastructure is expanding rapidly as the world continues to advance electrification as a means to decarbonize. We're excited to join forces with Borrego's development business to create ECP's eleventh renewable platform and fourth standalone solar platform."
Borrego will continue to invest in its engineering, procurement and construction (EPC) and operations and maintenance (O&M) business units. Borrego EPC is a national builder of utility-scale and community-scale solar and energy storage projects with more than 450 MW of solar projects and 200 MW of energy storage projects currently in design or construction. Borrego is also a leader in third-party O&M services for distributed generation and utility-scale solar plants. The team currently manages the performance of 1.4 GW and over 1,000 solar operating assets, the majority of which were built by other EPCs.
"We are seeing tremendous opportunities in Borrego's EPC and O&M services. This sale ensures we can invest in our people and build the technology that will position them to capitalize on what will be a record-breaking decade for solar and storage deployment in the United States," said Mike Hall, chief executive officer of Borrego. "I am thankful for the incredible development team that I've had the pleasure of working with for the last 12 years. We are thrilled that we were able to find a partner with ECP's industry experience, financial resources and reputation. I am confident that together they will accomplish great things and continue Borrego's mission to accelerate the adoption of renewable energy."
J.P. Morgan Securities LLC acted as exclusive financial advisor to Borrego in connection with the transaction.
Borrego, a leading developer, EPC and O&M provider, accelerates the development and delivery of large commercial, community solar, and utility-scale solar and energy storage projects in the United States. Borrego offers a broad range of renewable energy services and has a track record of superior performance in the hundreds of large solar and energy storage projects it has designed, built and maintains throughout the United States. Established in 1980, it has regional offices in California, Massachusetts, and New York with a nationwide footprint. Borrego creates value by helping partners make better decisions at critical points in every project's life. Its team brings deep technical expertise to its mission of solving the world's energy problems. For more information, visit www.borregoenergy.com.
ECP, founded in 2005, is a leading investor across energy transition, electrification and decarbonization infrastructure assets, including power generation, renewables and storage solutions, environmental infrastructure and efficiency & reliability assets facilitating the energy transition. The ECP team, comprised of 61 people with 500 years of collective industry experience, deep expertise and extensive relationships, has consummated more than 60 transactions over the last 10 years, representing more than $45 billion of enterprise value. For more information, visit www.ecpgp.com.
Kiterocket for Borrego
Jonathan Keehner / Woomi Yun / Kara Brickman
Joele Frank, Wilkinson Brimmer Katcher
SOURCE Borrego Solar Systems Inc