TotalEnergies Advances Strategy with VSB Group Acquisition
Deal News | Jan 24, 2025 | EIN
TotalEnergies has announced two strategic transactions, demonstrating its capital recycling strategy through an acquisition in Germany and a partial divestment in the US. The French energy giant signed an agreement with Partners Group to acquire VSB Group, a German renewable energy project developer, for €1.57 billion. VSB Group is a leader in European renewables, with a strong portfolio of onshore wind power projects and additional capacities under development across Germany, France, and Poland. This acquisition will bolster TotalEnergies' position in Germany’s integrated power market and strengthen its renewable portfolio in Europe. Concurrently, TotalEnergies has agreed to sell 50% of a 2 GW solar and battery storage project portfolio in Texas to funds managed by Apollo for $800 million. TotalEnergies will maintain operational control of these assets. These moves are part of TotalEnergies' strategy to optimize its capital allocation and enhance the profitability of its renewables business.
Sectors
- Renewable Energy
- Private Equity
Geography
- Germany – TotalEnergies is acquiring VSB Group, a key player in the German renewable energy market, thus strengthening its position in Europe’s integrated power market.
- United States – TotalEnergies is selling a 50% stake in a large-scale solar and battery energy project to Apollo, spotlighting the US as a target market for capital allocation in renewables.
Industry
- Renewable Energy – This industry is involved in the generation and management of energy from renewable sources, such as wind, solar, and battery storage, which are key areas of focus in TotalEnergies' strategic transactions.
- Private Equity – Partners Group's involvement in the deal to sell VSB to TotalEnergies highlights the role of private equity in facilitating large-scale investments in the renewable energy sector.
Financials
- 1.57 billion EUR – The equity value and shareholder loan consideration for the acquisition of VSB Group by TotalEnergies.
- 800 million USD – Cash received by TotalEnergies from the sale of a 50% stake in 2 GW solar and BESS projects to Apollo, consisting of $550 million equity and $250 million shareholder loan refinancing.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TotalEnergies | Acquirer and Seller | Company | A French multinational integrated energy and petroleum company leading strategic investments and divestments in the renewables market. |
| VSB Group | Target Company | Company | A Germany-based renewable energy project developer with a significant European presence in onshore wind power. |
| Partners Group | Vendor | Company | A global private markets investment management firm selling VSB Group to TotalEnergies. |
| Apollo | Buyer | Company | A global investment management firm acquiring a 50% stake in TotalEnergies' solar and battery storage projects in the US. |