5 October 2023

Energy group Energo-Pro buys ten hydroelectric power plants in Spain

The acquisition includes the purchase of 100% of Xallas Electricidad y Aleaciones and Feroe Ventures & Investments from global investment firm Sixth Street Partners. To finance the transaction, Energo-Pro has secured a EUR 300 million loan from US banks JPMorgan and Goldman Sachs.

shutterstock 148084124 - Copy lo (1)

Xallas Electricidad y Aleaciones operates ten hydroelectric plants with a total capacity of 167 megawatts and two ferroalloy plants. The other company included in the transaction, Feroe Ventures & Investments, is bidding for a concession for a new pumped storage project with a planned capacity of 400 megawatts. Xallas Electricidad y Aleaciones produced 386 gigawatt hours of electricity in 2022 and the combined sales of the two companies being acquired by Energo-Pro amounted to EUR 185 million, with EBITDA earnings of EUR 45 million.

Energo-Pro, founded in 1994, is part of the DK Holding Investments group, wholly owned by entrepreneur Jaromír Tesar. The company owns and operates hydroelectric power plants in five countries, including Georgia, Turkey, Bulgaria, Spain and the Czech Republic. In addition, Energo-Pro is involved in the distribution and sale of electricity, operating distribution networks in Bulgaria and Georgia that serve more than 2.3 million customers.The group also includes Litostroj, a manufacturer of turbines and machinery for hydroelectric power plants. The total installed capacity of the company's power plants is 857 megawatts, with annual electricity production exceeding 2.5 terawatt hours. In addition, last year the group started construction of a hydroelectric power plant in Colombia after obtaining all the necessary licenses.

Energo-Pro is currently experiencing a prosperous period. Last year, the company achieved record profits thanks to high electricity prices and posted an all-time high operating EBITDA of EUR 307.8 million.