Company says it plans to acquire waste-to-energy facilities in select global markets.
Bluesphere Corp., a Charlotte, North Carolina-based company that develops, manages and owns waste-to-energy (WTE) projects, says it is rapidly executing on its strategy to acquire fully operational facilities in select global markets. The company has just signed a letter of intent (LOI) to acquire seven such facilities in Italy.
Subject to the completion of due diligence, Bluesphere will purchase up to 100 percent of the seller’s rights, title and interest to seven anaerobic digestion (AD) facilities in Italy. The due diligence period is up to 60 days. The facilities currently being evaluated under the LOI have long-term agreements with local utilities that are purchasing electricity from the AD plants, says Bluesphere.
Based on due diligence conducted to date, collectively the plants are producing very high EBITDA (earnings before interest, taxes, depreciation and amortization), are expected to have an internal rate of return of greater than 25 percent and, if acquired, would generate strong immediate cash for Bluesphere, according to the company’s CEO.
“This marks a huge milestone for our company,” says Bluesphere CEO Shlomi Palas. “We have swiftly implemented our intended strategy of creating near-term revenues and positive cash flows through acquisition. In addition there are nine more 1 megawatt facilities in Italy with at least one year of operating history that we are currently evaluating for our portfolio.”
Bluesphere announced in June 2014 that it is pursuing a strategy to acquire fully operational, revenue generating waste-to-energy facilities in select global markets. The company is augmenting its current build-own-and-operate model with an acquire-own-and-operate strategy with a goal to create immediate revenue and cash flow generation, which it says will put it on a short-term path to profitability.
