SeaWest Wind Power
San Diego, California
has been acquired by
The AES Corporation
Capital Alliance Corporation initiated
this transaction and assisted in its closing.
SeaWest Wind Power
SeaWest Windpower was a leading developer of utility scale wind energy products, primarily in the western United States. With the assistance of Capital Alliance, SeaWest sold its business for $60.5 million to AES Corporation, a multi-billion dollar global power company.
Prior to the acquisition, SeaWest had developed over 3,300 megawatts in wind energy projects. Approaching retirement age, and looking to mitigate the large cash outlays required for future expansion, the company principals sought an acquirer for the business. Despite their best efforts, they could secure no offers greater than $30 million, well below the company’s value based on the reasonable expectations of the shareholders.The principals called upon Capital Alliance to help quantify the company’s value and to engage the most likely potential buyers. Using a structured, questionnaire-based process, Capital Alliance investment bankers created a detailed valuation of the company’s worth. In parallel, Capital Alliance analyzed the industry’s leading wind developers, emerged with a master list of potential acquirers, and provided the best-fit candidates with action-driven outreach materials. Forty-seven qualified acquirers requested books; fifteen made first-round offers. Capital Alliance engaged the six highest bidders, each offering upwards of $50 million, and narrowed the negotiations based upon offer prices and the non-monetary objectives of SeaWest.
Ultimately, SeaWest did not choose the highest bidder, opting instead for AES, a company with a synergistic business model. Capital Alliance negotiated a final agreement of $60.5 million in an all-cash transaction, which represented more than twice the amount of SeaWest’s highest previous offer.