Aker Solutions has agreed to acquire Norwegian hydropower company Rainpower Holding AS, strengthening its renewables portfolio.
The company will purchase 100% of the shares in Rainpower from a subsidiary of Aker Horizons, which announced an acquisition of Rainpower in January 2021. Aker Solutions and Rainpower have collaborated on both technical and strategic topics over the past year.
Aker Solutions said it was through this collaboration it become apparent it has complimentary capabilities with Rainpower, and is well positioned to realize the potential of the hydropower technology company.
“This acquisition will complement Aker Solutions' existing renewables portfolio and contribute to further accelerating our strategy and transformation journey," said Kjetel Digre, chief executive officer of Aker Solutions. " We will combine Rainpower’s hydropower portfolio and experience with Aker Solutions' system engineering and project management expertise. Our power and controls systems competence combined with Rainpower’s technologies will enable us to offer complete digital electro-mechanical deliveries within hydropower.”
Rainpower develops, produces and delivers hydropower turbines, control systems and associated equipment for clients and projects worldwide. The company supplies equipment for new installations and performs upgrades of existing hydropower plants. Rainpower has more than 165 years of history dating back to 1853 when the Norwegian hydropower competence was developed by Kvaerner. The company has been involved in some of the world’s largest projects within hydropower development, including the Three Gorges Dam in China.
"There is a growing market for upgrading the existing installed base of hydropower to reflect the needs of the renewable power markets moving forward. Hydropower plays a crucial role in the transition to a fully renewable energy system, providing necessary system flexibility and stability to support increased and faster electrification of assets. We look forward to continuing the journey as part of Aker Solutions," said Hege Brende, chief executive officer of Rainpower.
The transaction is expected to be completed during the second quarter of 2022. The purchase price is about NOK 100 million, with an additional discretionary element which may bring the purchase price to NOK 150 million. The transaction remains subject to various closing conditions, including certain third-party approvals.
