Private equity firm KKR (NYSE:KKR) announced on Friday an agreement to buy one of the largest solar-energy farms in North America from Starwood Energy Group.
The deal for SSM Solar includes three solar photovoltaic, or PV, sites in Ontario, Canada. Starwood is an affiliate of Connecticut-based private equity firm Starwood Capital Group.
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While terms of the agreement were not disclosed, Dow Jones reported earlier Friday that the value of the deal is in the hundreds of millions of dollars, but less than $500 million, including debt.
Starwood bought the project in 2009. Since 2010, it has been adding electricity-generating capacity to all three projects and completed the improvements in May. The farm, which powers approximately 7,000 homes, sells the energy to the Ontario Power Authority as part of a 20-year pact.
KKR said overall operations and management of the solar projects will continue to be handled by EDF Renewable Energy.
“When it comes to infrastructure, renewable energy is one of our top priorities; not only is the sector a critical part of energy supply diversity, but these investments can also provide investors with highly predictable long-term income streams,” Raj Agrawal, KKR’s head of North American Infrastructure, said in a statement.
There are currently only a handful of expansive North American solar farms comparable in size to the assets in KKR’s deal with Starwood.
SSM Solar represents KKR’s eighth infrastructure and fourth renewable investment, according to the firm.
Shares of KKR were up nearly 1% to $18 Friday morning.