Rainpower Holding, a key technology provider to the hydropower industry,is going to be acquired by Aker Solutions.
The acquisition is in line with Aker Solutions’ expansion plan and will strengthen the business’s renewables offering, according to the company.
Rainpower’s development into an innovative hydropower technology firm with the goal of optimising hydropower development and operations, according to Aker Solutions, has strong industrial synergies.
Rainpower designs, manufactures, and ships hydropower turbines, control systems, and related equipment to clients and projects all over the world.
The company provides new installation equipment as well as upgrades to existing hydropower facilities. Rainpower has a 165-year history, dating back to 1853, when Kvaerner pioneered the Norwegian hydropower expertise.
The company has worked on some of the world’s largest hydropower development projects, including China’s Three Gorges Dam.
“The world needs to take significant steps to reduce carbon emissions, and this will unlock large investments across multiple industries.” said Kjetel Digre, CEO of Aker Solutions.
Rainpower has a 165-year history, dating back to 1853, when Kvaerner pioneered the Norwegian hydropower expertise.
“Combined with the increasing demand for power market flexibility, energy security and energy storage solutions, renewable hydropower has a key role to play.
“This acquisition will complement Aker Solutions’ existing renewables portfolio and contribute to further accelerating our strategy and transformation journey.
“This acquisition has strong industrial rationale and will drive further growth in Aker Solutions’ renewables offering.
“We will combine Rainpower’s hydropower portfolio and experience with Aker Solutions’ system engineering and project management expertise.
“Our power and controls systems competence combined with Rainpower’s technologies will enable us to offer complete digital electro-mechanical deliveries within hydropower.
“We will also benefit from Aker Solutions’ strong manufacturing capabilities.”
Aker Solutions has agreed to purchase 100 percent of Rainpower’s shares from a subsidiary of Aker Horizons, which announced its acquisition of Rainpower in January 2021.
Over the last year, Aker Solutions and Rainpower have collaborated on both technical and strategic issues.
Through this relationship, it has become clear that Aker Solutions complements Rainpower’s skills and is ideally positioned to realise the hydropower technology company’s potential.
“There is a growing market for upgrading the existing installed base of hydropower to reflect the needs of the renewable power markets moving forward.” said Hege Brende, Rainpower chief executive.
“Hydropower plays a crucial role in the transition to a fully renewable energy system, providing necessary system flexibility and stability to support increased and faster electrification of assets.
“We look forward to continuing the journey as part of Aker Solutions.”
During the second quarter of 2022, the transaction is expected to be finalised. The purchase price is estimated to be around NOK100 million (€10.4 million), with a discretionary factor that might push the price up to NOK150 million.
The deal is still subject to several closing conditions, including third-party approvals, as well as a third-party valuation study.