SkyPower sells equity stake to Lehman Brothers
SkyPower sells equity stake to Lehman Brothers Private Equity
NEW YORK & TORONTO, June 2 /CNW-AsiaNet/
SkyPower Corp., one of Canada's leading renewable energy companies with a substantial portfolio of wind and solar projects across Canada has announced today that Lehman Brothers and its Private Equity business have acquired a significant equity stake in the company.
The investment includes an up-front acquisition payment, commitments to future project financing as well as other investment opportunities in the renewable energy sector.
A portion of the up-front payment will be used by the Adler Renewable Energy Foundation (AREF) a foundation which is being formed to help provide select schools and needy communities in Canada the ability to benefit from clean renewable power by having solar or wind power to augment or replace where possible their current power needs.
The current SkyPower management team, led by its Founder and Chief Executive Officer, Kerry Adler, will continue to be responsible for and oversee all ongoing day-to-day operations as well as the strategic direction of the company.
Kerry Adler, President and Chief Executive Officer of SkyPower commented: "This is an important milestone for SkyPower, our stakeholders and our partners. This transaction with Lehman Brothers provides us a unique solid platform whereby we can accelerate the growth of our business. We believe that we will be better positioned to capture increased opportunities as part of our mandate and commitment to help Canada become a global environmental leader by developing our vast natural renewable power resources and generating clean, green renewable power. Lehman Brothers has clearly demonstrated its leadership and environmental responsibility, and speaking on behalf of the entire SkyPower team we are proud to be affiliated with an organization that is as committed to addressing the issues of climate change."
"We are excited to partner with the SkyPower management team in embracing the dynamic growth opportunities available in wind and solar energy,'' said Michael Odrich, global head of Private Equity for Lehman Brothers. "This investment is consistent with our Private Equity strategy of backing premier management teams and underscores the Firm's commitment to renewable energy."
Stated Theodore Roosevelt IV, chairman of Lehman Brothers' Council on Climate Change, "Our investment in SkyPower demonstrates the necessary linkage between sound financial decisions and a better environment."
Since its inception in 2003, SkyPower has focused on developing wind and solar power projects and has focused on a community-based development strategy which aims to include the First Nations of Canada and local municipalities in their renewable energy efforts. The extensive background of the SkyPower team and advisors of over 40 strong and growing, is the cornerstone and most critical component of SkyPower's strategic plan.
The vast experience of the team which come from industry sectors such as energy, telecom, real estate, BPO (business process outsourcing), banking and engineering has provided SkyPower with the talent and tools that will ensure its continued penetration and success in the renewable energy industry.
SkyPower was advised on the transaction by Marathon Capital headquartered in Bannockburn, Illinois, and Genuity Capital Markets based out of Toronto, Ontario. The transaction is expected to close in mid June 2007 and specific terms of the transaction were not disclosed.
About SkyPower SkyPower is a Canadian leading independent renewable energy developer with interests in over 50 wind and solar projects at various stages of development across Canada, representing more than 7,000 MW of potential capacity. SkyPower's strategy involves bringing a portfolio of renewable energy projects from exploration phase through to construction and commercial operation. For further information about SkyPower or to explore partnership opportunities visit our website at www.skypower.com
About Lehman Brothers Lehman Brothers' Private Equity business, started in 1984, consists of 16 different fund strategies across six asset classes: merchant banking, venture capital, real estate, fund-of-funds, credit and infrastructure.
Lehman Brothers' Investment Management Division (IMD) encompasses three global businesses: Private Equity, which provides investment opportunities in privately negotiated transactions across a variety of asset classes for institutional and qualified individual investors; Private Investment Management, which offers comprehensive investment, wealth advisory and capital markets execution services for high net worth individuals and businesses, leveraging all of the resources of the Firm; and the Asset Management business, which offers proprietary asset management products across traditional and alternative asset classes, through a variety of distribution channels to individuals and institutions. IMD Assets under Management totalled $236 billion as of February 28, 2007.
Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management, and private equity. The firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. For further information about Lehman Brothers' services, products, and recruitment opportunities, visit the firm's Web site at www.lehman.com.
About Marathon Capital Established in 1999, Marathon Capital, LLC is an investment banking firm focused on the global energy and infrastructure markets and this represents its fourth transaction involving a major renewable energy development company and a global strategic in the last nine months. Marathon is currently working on several similar assignments. Marathon is headquartered in Bannockburn, Illinois and its web site is www.marathon-cap.com.
About Genuity Capital Markets Genuity Capital Markets is an independent investment dealer that provides comprehensive research, trading, sales, underwriting and M&A services from its offices in Canada's four major financial centres as well as New York and Boston (through its GCM USA Corp. subsidiary). Genuity Capital Markets and GCM USA are operating subsidiaries of parent Genuity Financial Group. The firm's web site is www.genuitycm.com.