Terna: agreement signed for acquisition of 70% stake in Avvenia

NEWS

10

October 2017

Through its subsidiary Terna Plus, Terna has signed an agreement for the acquisition of 70% of a NewCo into which will be transferred the main assets of Avvenia, a leading company in the energy-efficiency sector, which has confirmed its position over the years as one of the main Italian businesses certified as an Energy Service Company (ESCo).

'This operation' - explained Luigi Michi, Terna Strategy and Development Manager - 'allows Terna to enhance its offer of integrated energy solutions for the market and, by leveraging Avvenia's know-how, to take on the role of Energy Solution Provider in line with the Strategic Plan for the Group's Non-Regulated Activities'.

The agreement was signed based on a valuation of Avvenia's assets totalling € 10 million (Enterprise Value relative to 100%) and also includes the option to acquire the remaining 30% within 24 months of closing the operation, which will take place in early 2018.

In 2016, Avvenia reported revenues of over € 12 million, an EBITDA of around € 2 million and a positive Net Financial Position.

Avvenia is among the companies with the highest level of specialisation and widest range of capabilities in its sector and with average savings of 65% in energy consumption for its own customers, and € 170 million in benefits generated; it has created and managed a number of efficiency projects that can be included among the best in Italy, also through EPC (Energy Performance Contract) solutions.