Family firm the Banks Group has sold its renewable energy division in a deal reported to be worth as much as $1bn.
Banks Renewables has been snapped up by global asset manager Brookfield – owners of Teesport operator PD Ports - which has a total of $850bn of assets under management. The Banks Group said Brookfield’s resources will enable the fuller development of opportunities the County Durham firm has been exploring since establishing its renewables business in 2006. Since then the firm has grown to become one of the UK’s leading independent owner/operators of onshore wind.
The division currently has 11 onshore wind farms across the North East, Yorkshire, the North West and Scotland, and earlier this year it completed the construction of its 100th wind turbine as part of the development of the new Kype Extension Wind Farm in South Lanarkshire. So far, around £3.5m has been distributed from the community benefits funds linked to the group’s wind farms, which provide funding for voluntary groups, environmental projects and good causes in their respective locations.
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Banks Group’s other businesses, including Banks Property, Banks Homes, Banks Mining, Banks Transport and Banks Plant Solutions, will continue to operate as normal. Founder and chairman of the Banks Group, Harry Banks, said: “I believe that Brookfield’s established position in the renewables industry and the strong cultural fit that exists between both businesses will lead to this acquisition being to the benefit of all parties involved.
“The greater resources of Brookfield will enable the fuller development of opportunities which Banks Renewables are introducing. It will be good for Banks Renewables’ employees and their career prospects, and it will be good for Brookfield because they are acquiring a renewables business with a proven track record and a capability to take the business forward.
“This is also good news for other Banks Group businesses and their employees, who will continue to develop our existing businesses in land, property, mining and in developing our new regional housebuilding business, Banks Homes.”
Sebastian Perl, vice president at Brookfield, added: “The United Kingdom is a high-quality location for renewable energy development and we are delighted to have made a further commitment to this market. We have a track record of being long-term owners of renewable energy businesses around the world and we see great potential to continue the great work that Banks Renewables has already achieved.”
The Banks Group was advised by Rothschild & Co (corporate finance and M&A) and Ashurst (legal) during the transaction. No value for the deal has been released by the parties involved, but reports have put it at between £500m and $1bn (£828m).
