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03 March 2011

Terra Firma completes the largest ever solar generation acquisition in Europe

The leading private equity firm, Terra Firma, is pleased to announce the completion of the acquisition of Rete Rinnovabile S.r.l., the market leading solar photovoltaic (PV) generation business in Italy, with a capacity of 144MW, from Terna, the Italian high-voltage grid operator.

The transaction values RTR at approximately €641 million and is funded by a mixture of debt and equity. The transaction is the largest ever solar generation acquisition in Europe, and one of the largest private equity transactions in Italy.

RTR is the market leading solar generation business in Italy. RTR has a first class portfolio of sites in prime locations, predominantly within secure Terna substation compounds. Terra Firma intends to build on RTR's attractive platform to create one of Europe’s leading renewable energy businesses.

Commenting on today’s announcement, Guy Hands, Chairman and Chief Investment Officer of Terra Firma, said:

“I am very pleased to announce the acquisition of RTR. It is a high quality, early stage renewable energy business in one of Europe's most important markets. RTR is the largest PV generator in Italy and we believe it has the potential to become one of largest in Europe. Through our existing renewable energy businesses, Infinis (UK) and Everpower (USA), Terra Firma has developed and operates the largest green energy portfolio of any private equity group in the world and is one of the largest investors in green energy worldwide. We have excellent portfolio businesses and world-class expertise in this sector and expect to make further investments in green energy in the future.”

Terra Firma was advised by Bank of America Merrill Lynch and Climate Change Capital.

For further information: Andrew Dowler
+ 44 (0)7251 3801
Finsbury

Notes to editors:
Terra Firma is a leading private equity firm which specialises in buy-outs of large, asset-rich and complex businesses. It creates values for those businesses and its investors by delivering improved strategy, operations and management. Since being set up in 1994, Terra Firma has invested over €13 billion of equity and completed transactions with an aggregate enterprise value of €43 billion. Further information at www.terrafirma.com

Terra Firma has become one of the most active investors in renewable energy in the world with its other investment being:

Infinis which is the UK’s largest pure renewable energy company and one of the UK’s most successful and fastest growing private equity owned companies. It was established by Terra Firma in 2006, when Terra Firma demerged a business unit from the Waste Recycling Group. Terra Firma had bought the Waste Recycling Group in 2003 and sold the remainder of the company in 2006 at the time of the de-merger of Infinis. Since 2006 Infinis has grown more than eight-fold with its operating capacity increasing from 50MW to 439MW and EBITDA increasing from £12m to an expected £100m this year.

EverPower Wind Holdings which was acquired by Terra Firma in November 2009 is focused on the development and management of wind energy generation assets across the United States. The company has an extensive portfolio of wind assets spread across them development cycle. This portfolio includes a significant number of near-term development opportunities which are largely concentrated in the attractive North East and West Coast US power markets and which EverPower is focused on developing over the next few years. Additionally, EverPower currently has one wind farm facility, located in Pittsburgh, Pennsylvania, which commenced commercial activity in 2009 with a 62.5 MW operating capacity.

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