Ontario Teachers fund buys out ARC
Calgary- based green power company BluEarth Renewables Inc. has had its two major shareholders reduced to one, with the Ontario Teachers’ Pension Plan buying out Calgary private equity firm ARC Financial Corp.
Financial details were not released Thursday.
When BluEarth was founded in 2010, it reported having $ 167 million in seed money commitments, including $ 75 million from Teachers and $ 80 million from ARC.
ARC was also a major investor in Calgary- based Canadian Hydro Developers Inc., a green power company founded by brothers Ross and John Keating in 1989. It was sold for $ 1.6 billion in 2009 to giant TransAlta Corp.
BluEarth was created by the Keatings and Kent Brown, president and CEO of both companies.
The company announced Thursday that chief operating officer Grant Arnold will be promoted to the position of CEO and Brown will serve as an executive adviser and a director.
John Keating is to remain chairman of the board.
“For the most part it’s business as usual,” said Brown in an interview. “Our head office is our head office, there’s no change in our business plan. We want to grow the business on the renewable energy side, so wind, solar and run- of- river hydro, with a Canada- first basis.”
The company’s goal was to have $ 1 billion in operating assets in the first five to seven years, Brown said, noting that goal is in sight. He said the company hopes to grow faster with Teachers’ backing, perhaps adding another $ 1.5 billion in the next five years.
He said employees will continue to own some of the shares.
“During our partnership with ARC, BluEarth established itself as a leader in the Canadian renewable power sector.
“Its portfolio of high- quality projects will provide attractive long- term returns that will help us to pay member pensions,” said Jane Rowe, senior vice- president, in a Teachers news release on Thursday.
BluEarth’s portfolio currently includes interests in 18 projects across Canada totalling 174 net megawatts, with a pipeline of earlier stage development projects.