Parkmead expands green plans with wind farm deal
Energy group Parkmead has made a further strategic move into renewables by acquiring Kempstone Hill Wind Energy, a company owning a 1.5MW onshore wind farm in Scotland.
The £3.29 million cash deal will see the Aberdeen-based oil and gas company assume a project loan of approximately £990,000.
The wind farm provides power for up to 1,000 homes and has an inflation-linked, Feed-in Tariff for the life of the project through until 2036
Parkmead said the acquisition significantly increases its presence in renewable energy and electricity markets.
For the financial year to 30 September 2021, Kempstone Hill generated revenue of £0.38 million and an adjusted EBITDA of £0.23 million. As at 1 October it held approximately £300,000 in cash.
Parkmead’s focus has been to build a robust and balanced European energy business, which the board has been actively looking to further enhance in cleaner and renewable energies.
It said the acquisition sits well within the board’s strategy. Furthermore, it believes that the company will benefit from Kempstone Hill’s established relationships and expertise as it looks to grow its renewable energy developments.
The acquisition is immediately revenue and cash flow enhancing. Cost synergies have been identified and Parkmead has also identified potential upside opportunities.
Tom Cross, executive chairman, said: “This important acquisition continues our clear and focused strategy to build a balanced energy group.
“Kempstone Hill provides another revenue-generating asset to Parkmead, which has a long-life and a very steady stream of cash flow. This operational wind farm is complementary to our earlier stage, high-upside renewable energy projects.
“The energy industry is experiencing rapid change and the Parkmead team is growing our Company through these challenges and adding exciting opportunities in renewable energy.
“We will continue to build a portfolio of high-quality energy projects through acquisitions, organic growth and the active management of our assets across all energy sectors.”