Vinci has completed the purchase of ACS’s energy business (Cobra IS) after announcing the agreement on 1 April 2021. The acquisition covers most of the contracting business of the ACS Industrial Services division; 9 greenfield concession projects under development or construction, mainly electrical transmission networks in Latin America as well as the renewable energy project development platform. Cobra IS’ business and geographical footprint complement those of Vinci, through its expertise in delivering turnkey EPC (Engineering, Procurement and Construction) projects in the energy sector and with its strong local positions in the Iberian Peninsula and in Latin America.
The final purchase price of €4.9 billion, financed entirely through Vinci’s available cash, equates to the enterprise value of €4.2 billion initially agreed by the parties, plus €700 million relating to cash held by the new unit and various adjustments. ACS will receive an earn-out payment of €40 million for each GW of ready-to-build renewable energy capacity developed by Cobra IS over a period of 8.5 years, up to 15 GW, resulting in a maximum additional payment of €600 million. Vinci and ACS have also finalised a joint venture agreement, providing for the creation of a new entity that will have the right to buy, at market price, renewable energy assets developed, financed, built and connected to the grid by Cobra IS. Vinci will own 51% of this entity, which will be fully consolidated in Vinci’s financial statements.
Xavier Huillard, VINCI’s Chairman and CEO, commented: “The integration of ACS’s energy business, including its renewable energy project development platform, is excellent news for Vinci. With this strategic deal, we intend not only to build a global leader in engineering, works and services focused on the energy sector – in which Vinci already has extensive operations – but also, thanks to the long track record expertise that Cobra IS has developed, to accelerate our development in renewable energies, which will help us make a greater contribution to the environmental transition. We are enthusiastic to welcome Cobra IS’ people, led by their highly experienced management team, to the Vinci group.”