Asdod, Israel –News Direct– Nofar Energy Ltd.
Nofar Energy LTD (“Nofar”), a global renewable energy power producer with activity across Europe and Israel, acquired 67% of the interest in Blue Sky Utility (“Blue Sky”), a US based, Commercial and Industrial (“C&I”) solar and storage developer for a total consideration of $91M. The acquisition capital will be divided up between $26M of initial purchase and equity injection into Blue Sky and a debt facility of $65M provided for future growth investments.
Blue Sky is a renewable energy and storage developer, based out of Napa, CA. Blue Sky specializes in a unique business model tailored to the C&I space with a focus on multitenant real estate. The company’s business model is characterized by scalability and uniformity. The company currently operates and manages over 20MW of C&I assets and maintains a near term pipeline of over 80MW of new solar and storage installations.
For Nofar Energy, this transaction represents its entry into the U.S., which aligns to the company’s strategy to expand its operations into the world’s leading markets and synergetic to Nofar’s expertise in the C&I space. Both the US market and the C&I segment continue to demonstrate robust growth with an estimated increase of 25% in 2021 vs. 2020. Nofar and Blue Sky expect the investment to accelerate the execution of Blue Sky’s existing near-term pipeline and the implementation of several hundreds of MW in development.
“Nofar engaged in a thorough investigation of the US market,” noted Ofer Yanay, Nofar’s founder and Chairman, “and through this process we became aware of Blue Sky and their unique business model. Blue Sky’s qualities resemble those of Nofar Energy; an emphasis on C&I projects, high level of scalability and uniformity and a set of capabilities and execution track record that present significant barriers to imitation.” Nadav Tana, Nofar’s CEO added, “we have singled the U.S. market as one of Nofar’s most important destinations and I am pleased to announce this significant investment.”
“We’re excited to be joining forces with Nofar,” explained Ran Bujanover, Blue Sky’s President, “in Nofar we found a partner that shares our market philosophy and has the capacity to support our acceleration.” Barend Venter, Blue Sky’s CEO further elaborated, “Nofar’s excellence in the C&I space demonstrated real synergies. The combination of our two companies has the potential to create a real powerhouse in the local C&I space.”
Beta Finance served as financial advisor, Lummus Consultants as technical advisors, ICF as market advisors, KPMG as accounting and tax advisors and Barnea Jaffa Lande & Co and WilmerHale LLP served as legal counsel to Nofar Energy. Garrett Stiepel Ryder served as legal counsel to Blue Sky.