French Indie Buys into Renewables, Biogas

Direct Energie, an independent electricity and gas supplier in France, said late October 31 it completed the acquisition of 100% of renewable energy provider Quadran from Lucia Holding.

The deal covers the onshore wind farms, solar farms, hydropower and biogas plants in mainland France, and French overseas renewable activities.

Direct Energie will pay €303mn ($353mn), plus €41mn contingent on 185 MW of new capacity coming online by mid-2019, for a total of €344mn. Of that €328mn will be paid cash, funded through a new share issue to Lucia. Quadran will be consolidated in Direct Energie's financial statements from November 1.

Direct Energie said the acquisition was in line with its vertical integration strategy and reinforces its presence in power generation. Its CEO Xavier Caitucoli said his company aims "to establish itself as the leading alternative player with the aim of delivering 4mn customer sites by 2020."

Quadran's installed capacity at end-2016 was over 360 MW gross and expected to reach 800 MW by end-2018.

Mark Smedley