Engie SA agreed to buy Broad Reach Power LLC, a private equity-backed US battery company, as part of a strategy to expand in electricity storage and renewables.
The purchase from Apollo Global Management Inc. and EnCap Investments will bolster Engie’s presence in states such as Texas and California, which are working to shore up energy security after suffering blackouts in recent years. The French utility said it’ll take a $1.6 billion hit to net debt from the deal.
The acquisition gives Engie 350 megawatts of operating assets, as well as 880 megawatts under construction and a further 1.7 gigawatts of advanced-stage projects, the company said Thursday. It already has renewable energy and power storage operations in the US.
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