Banks Group, a family-owned firm based in County Durham, has announced the sale of its renewable energy division, Banks Renewables, to Brookfield, a global asset manager with $850 billion of assets under management. The deal is reported to be worth between £500 million and $1 billion.
A leading player in the UK’s onshore wind sector
Banks Renewables was established in 2006 and has grown to become one of the UK’s leading independent owner/operators of onshore wind farms. It currently has 11 onshore wind farms across Yorkshire, the North East, the North West and Scotland, with a total installed capacity of 224 megawatts (MW).
Earlier this year, the company completed the construction of its 100th wind turbine as part of the development of the new Kype Extension Wind Farm in South Lanarkshire, which is due to become operational in the near future. The company also has a pipeline of projects with a potential capacity of over 1 gigawatt (GW).
Banks Renewables has been committed to delivering social and environmental benefits to the communities where it operates. It has created hundreds of jobs, supported local businesses and invested millions of pounds in community funds and environmental projects.
A strategic move for both parties
The sale of Banks Renewables to Brookfield is a strategic move for both parties. For Banks Group, it allows the company to focus on its other businesses, including Banks Property, Banks Homes, Banks Mining, Banks Transport and Banks Plant Solutions. The company said it will continue to develop its land, property, mining and new regional housebuilding business.
For Brookfield, the acquisition strengthens its position in the UK’s renewable energy market and adds to its global portfolio of renewable assets. Brookfield is one of the world’s largest investors in renewable power, with over 20 GW of generating capacity across more than 30 countries.
Brookfield said it sees great potential to continue the great work that Banks Renewables has already achieved and to support the UK’s transition to a low-carbon economy.
A positive outcome for all stakeholders
The deal was welcomed by both parties as a positive outcome for all stakeholders involved. Harry Banks, founder and chairman of the Banks Group, said:
Sebastian Perl, vice president at Brookfield, added:
The Banks Group was advised by Rothschild & Co (corporate finance and M&A) and Ashurst (legal) during the transaction.
