Acea to divest Acea Energia to Eni’s Plenitude for €588m

Italian utility Acea’s board of directors has approved a binding offer from Eni’ renewables subsidiary Plenitude for the purchase of 100% equity in Acea Energia for €588.5m ($677.88m).

The deal includes a 50% stake in Umbria Energy but excludes business lines such as energy efficiency, electric mobility, circular economy and energy management.

Eni Plenitude has proposed an enterprise value of €460m for Acea Energia as of December 2024, utilising a locked box mechanism.

The overall basic consideration of €588.5m accounts for normalised net cash positions and potential adjustments common in such transactions.

The offer also includes up to an extra €100m ($116m) payment based on performance targets set for mid-2027.

Completion of the transaction is contingent on regulatory approvals and final agreement negotiations, with expectations set for June 2026.

Acea CEO Fabrizio Palermo stated: “This transaction, consistent with Acea’s strategy outlined in the 2024-2028 Business Plan, will enhance the group’s position as infrastructure operator, offering the opportunity to reinvest the proceeds of the sale for further development in the businesses that have a strong connotation with infrastructure, with special reference to the enhancement of investments aimed at improving the safety of Roma Capitale’s electricity distribution network.”

The sale does not affect Acea’s guidance regarding earnings before interest, taxation, depreciation and amortisiation (EBITDA) or its NFP/EBITDA ratio post-adjustments related to this transaction.

The company plans to update its five-year (2024-2028) strategy to reflect the asset rotations initiated by selling high-voltage grids, including the current deal, and considering other growth ventures such as new water sector bids and increased investments in electricity distribution networks.

Investment company Ares recently acquired a 20% stake in Plenitude for €2bn. This transaction is based on an equity valuation of €10bn, suggesting an enterprise value above €12bn.