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Aker — M&A Activity 2021
Jan 27, 2021
3526_rns_2021-01-27_ec3a3acb-9574-46ba-b52f-9d24dba33c5d.html
M&A Activity
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AKER ASA: Aker Horizons strengthens renewables portfolio with entry into hydropower
AKER ASA: Aker Horizons strengthens renewables portfolio with entry into hydropower
Aker ASA ("Aker") announced today that its wholly owned subsidiary Aker Horizons
AS ("Aker Horizons") has entered into an agreement to acquire Rainpower Holding
AS ("Rainpower"). Aker Horizons will use Rainpower as a platform to build a next
generation technology company to optimize hydropower developments and
operations.
"Aker Horizons is continuing its planet-positive investing, making strides
towards developing a growth platform of integrated renewable technologies with
positions in onshore and offshore wind and solar. With increasing demand for
power market flexibility and storage solutions, we are pleased to also be adding
hydropower capabilities to our portfolio through the acquisition of Rainpower as
a platform for building a next generation hydropower technology company," says
Kristian Røkke, Chief Executive Officer at Aker Horizons.
Aker Horizons will acquire 100 percent of the shares in Rainpower and will
contribute approximately NOK 100 million in capital to transition and develop
the company into a next generation hydropower technology and solutions provider.
Aker Horizons will combine the engineering and industrial software capabilities
of the Aker group with Rainpower's hydropower portfolio and experienced project
organization to reposition the company for growth. The new company will be
included in Aker Horizons' sunrise portfolio of companies that are in an early
phase or require further development to realize their full potential. It will
seek to identify and develop concepts for upgrading the hydropower installed
base to reflect the needs of future power markets, including an increasing need
for flexibility to rapidly respond to swings in intermittent renewable power
generation and for cost-effective and sustainable power storage solutions.
Rainpower is an experienced project organization based on Norwegian hydropower
technology founded by Kvaerner in 1853. Today, Rainpower offers proprietary
technologies for integrated products and services to the hydropower industry
worldwide. Its product and service portfolio ranges from turbines, governor
systems, control systems and other equipment, maintenance services and
rehabilitation, as well as technology for hydropower system design and upgrades.
Rainpower is headquartered at Lillestrøm, Norway, and has offices across Norway,
as well as in Sweden and China.
The transaction is conditional on recapitalization of the company with its
current lenders, in addition to customary closing conditions including required
anti-trust filings.
"Hydropower is part of Aker's DNA, tracing back to the very start of the
industry when Kvaerner developed the first ever Norwegian turbine and formed the
basis for an entire Norwegian supplier industry. Fast forward to 2021, and the
story is coming full circle. In true Aker spirit, we are identifying
opportunities to build on our track record and capabilities to drive value
creation. Hydropower is an industry we already know well, but today we also
stand ready to leverage on decades of engineering insight and a strong software
expertise to develop world class technologies and solutions for the hydropower
industry" says Øyvind Eriksen, President and Chief Executive Officer at Aker ASA
and Chairman of Aker Horizons.
Rainpower will collaborate with leading industrial software company, Cognite, to
develop a portfolio of applications for optimization of operations, response
time, distribution, and trading. The company will also establish a concept
development and engineering insight team to become a key partner for the
hydropower industry, in addition to building an integrated portfolio of
operations technologies for next generation dynamic power plants.
For further information, please contact:
Atle Kigen, Head of Corporate Communications, Aker ASA
Tel: +47 90784878
Email: [email protected]
Christina Chappell Glenn, Head of Investor Relations, Aker ASA
Tel: +47 90532774
Email: [email protected]
Ivar Simensen, Communications, Aker Horizons and Aker Offshore Wind
Tel: +47 46402317
Email: [email protected]