Vinci to acquire ACS’ energy business
By Mike Hayes01 April 2021
French construction giant set to become global renewables player in €4.9 billion deal
French construction and concessions giant Vinci has agreed to acquire the energy business of Spain’s largest contractor, ACS.
The acquisition will catapult Vinci into the heart of the global renewable energy sector; a move hinted at by the company’s CEO and chairman Xavier Huillard, during February’s results announcement, when he said, “Now, more than ever, we have to step up our environmental policy.”
Within the scope of the acquisition, Vinci will take over an identified potential 15GW of renewables projects, primarily in the form of solar parks and both onshore and offshore wind farms.
As well as furthering its strategic plans to become a global force in the development of renewable energy projects, Vinci said the ACS acquisition is complementary from a geographical perspective, with the company having a significant footprint in Spain, Mexico, Brazil, Peru and Chile.
Vinci says it will pay approximately €4.9 billion for the business, which will include most of the contracting business of ACS Industrial Services, including its current EPC projects, which are largely in the energy sector.
Vinci will also pay ACS a further €40 million for each ready-to-build GW currently on its books, up to a total of 15GW over the next 8.5 years.
Huillard, said of the deal, “This acquisition is a unique opportunity for VINCI to create a global player in energy contracting and to develop renewables projects, remarkably fitting its strategy.
“The Group is delighted to welcome an outstanding management team and a skilled workforce of around 45,000 people. Synergies derived from complementary geographies, technical expertise and integrated business model, will be a significant asset to win new projects and to seize greenfield renewables energy opportunities.
“We will capitalize on ACS IS recognized track record to enhance Vinci’s contribution to the climate transition and pursue our environmental ambition together”.
Vinci says the acquisition will be financed through its currently available cash and credit lines and adds that – although the deal includes 45,000 members of ACS staff, for an additional revenue of more than €6 billion – the outlay will not have a significant impact on its balance sheet.