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Pacific Energy acquires Hybrid Systems
DLA Piper has advised Pacific Energy on the acquisition of Hybrid Systems.
Tony Zhang
Firms: DLA Piper (Hybrid Systems)
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Deal: Global law firm DLA Piper has advised power generation specialist Pacific Energy Limited on its acquisition of solar and battery microgrid specialist Hybrid Systems Australia.
Pacific Energy is a leading supplier of remote power in Australia. It operates 40 power stations with capacity of more than 400 megawatts, using either gas, diesel, dual fuel and renewables to generate electricity for long-term clients.
Value: $33 million.
Area: M&A, energy.
Key players: DLA Piper’s team was led by corporate partner Michael Bowen with special counsel Hedley Roost and solicitor Kirsty Hall.
Deal significance: This is Pacific Energy’s first bolt-on acquisition since it was gobbled up by QIC for $470 million late in 2019 after a bidding war with Canada’s OPTrust and Infrastructure Capital Group.
Pacific Energy chief executive Jamie Cullen said Western Australia was a fast-developing market for the kind of standalone power systems (SPS) and microgrid systems that it already operates at more than 20 mine sites.
Western Australian government-owned electricity distributor Western Power has identified thousands of potential sites for SPS installations and expects regional customers to move to the systems over the next decade.
Hybrid Systems is a key supplier to Pacific Energy subsidiary Contract Power, which recently won a 20-year supply contract to build, own and operate a renewables hub to power in Esperance, Western Australia. This project is on track to operate from 2022.
Mr Bowen said that this transaction will accelerate Pacific Energy’s growth strategy.
“We are delighted to support our client on this successful acquisition, particularly during these uncertain and challenging market conditions,” Mr Bowen said.
“Hybrid Systems has excelled in the fast-developing market for standalone power systems and this transaction delivers significant growth opportunities for Pacific Energy."
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