Summary
Exelon Corporation, through its wholly-owned subsidiary Exelon Generation Company, LLC, announced a significant acquisition on August 30, 2010, agreeing to purchase all membership interests of John Deere Renewables, LLC (JDR) from Deere & Company. This strategic move significantly expands Exelon's renewable energy portfolio by adding 735 megawatts of operating wind electric generating facilities and an additional 230 megawatts of wind generation projects in advanced development. The acquisition represents a substantial investment, with a base purchase price of $860 million, potentially increasing to $900 million based on the commencement of construction for certain development projects. This transaction underscores Exelon's commitment to growing its presence in the renewable energy sector, diversifying its generation assets, and capitalizing on opportunities in wind power. Investors should note that the deal is subject to customary closing conditions, including regulatory approvals, and involves standard representations, warranties, and indemnification clauses.
Key Highlights
- 1Exelon Generation Company, LLC entering into a Purchase Agreement to acquire John Deere Renewables, LLC (JDR).
- 2Acquisition includes 735 MW of operating wind generation facilities and 230 MW of wind generation projects under development.
- 3Total purchase price is $860 million, with up to an additional $40 million contingent upon project development milestones.
- 4The transaction significantly expands Exelon's renewable energy generation capacity.
- 5Closing is subject to customary conditions, including regulatory approvals from the Federal Energy Regulatory Commission and Texas Public Utilities Commission.
- 6Deere & Company will retain certain rights to proceeds from JDR's Texas projects pending resolution of ongoing litigation.
- 7No shareholder approval is required for this transaction by either Exelon or Deere.