BOSTON (AP) -- Atlantic Power Corp. said Friday that it plans to buy wind and solar company Ridgeline Energy Holdings Inc. for $88 million to strengthen its renewable energy portfolio.
Ridgeline, based in Seattle, is currently a subsidiary of Eolfi SA, a European renewable power development company that is majority owned by Veolia Environnement SA.
Atlantic Power, based in Boston, said the deal will add three wind projects to its business by the end of the year. The projects are expected to generate $9 million to $12 million in operating cash starting next year. Atlantic Power will also buy Ridgeline's development pipeline, which includes 20 wind and solar projects totaling roughly 1,000 megawatts and will increase its ownership interest in several existing wind projects.
The company plans to pay for the acquisition with proceeds from a planned issue of convertible debt.
The deal must be approved by the Federal Energy Regulatory Commission and other regulators. The deal is expected to be complete by year-end.
Atlantic Power shares rose 23 cents, or 2 percent, to $11.86. Veolia shares fell 13 cents to close at $9.42.