BORD Gais confirmed yesterday that it has acquired SWS Natural Resources, the country's second-biggest windfarm operator, in a deal worth more than €500m -- making it the third-largest Irish M&A deal this year.

The Irish Independent reported earlier this week that both sides were in exclusive talks.

The deal marks a welcome development for nationalised Anglo Irish Bank, which owned 17pc of the business, with a further 35pc owned by a group of investors assembled by the bank a few years ago.

Outsourcing

Dublin-based investment boutique Ion Equity held the remaining 40pc, but controlled the sale process by virtue of the fact that it led the 2006 takeover of the broader SWS Group, which also has a significant business outsourcing arm.

It is understood the windfarm deal comprises more than €275m of equity, with the remainder comprising the assumption of the company's debt.

The business comprises 180 megawatts (MW) of operating farms around the island of Ireland and a 400MW development pipeline, half of which is ready for construction over the next two years.

Bord Gais chief executive John Mullins said: "The acquisition significantly enhances the asset quality of our balance sheet and fulfils the commitment made when we went to international financial markets and raised over €800m. Over the next five years Bord Gais will invest almost €700m in the construction of the wind projects and in the process create 250 sustainable jobs."

SWS and Ion Equity Director Ulric Kenny said the assets were an "excellent fit" for Bord Gais.

"The drive and expertise of the SWS team is second-to-none and in partnership with the resources and ambition of Bord Gais the business is very well placed to deliver much-needed and efficient renewable energy for generations to come," said Mr Kenny.

Communications, Energy and Natural Resources Minister Eamon Ryan welcomed the deal as a "wise investment in the growing green economy".

Both Mr Ryan and Finance Minister Brian Lenihan must approve any acquisitions by semi-state Bord Gais, which saw its borrowing limit hiked earlier this year by the Dail to €3bn from €1.7bn.

Auction

Fellow semi-state company ESB dropped out of the auction process a number of months ago.

The entire SWS Group was taken over in late 2006 for €110m by Ion Equity from a collection of Munster-based agricultural co-operatives, led by Dairygold.

The natural resources division was spun out in 2007, paving the way for a €104m equity and debt fundraising, which brought Anglo and its clients on board.

Source: www.independent.ie