Aker Solutions acquires Norwegian hydropower company Rainpower

Source: press release, 30 March 2022

illustration: Rainpower
illustration: Rainpower

Aker Solutions has agreed to acquire Rainpower Holding AS, a technology provider to the hydropower industry. The acquisition builds on Aker Solutions’ growth strategy and will further strengthen its offering within renewables. Aker Solutions sees strong industrial synergies in further developing Rainpower into an innovative hydropower technology company to optimise hydropower developments and operations.

Rainpower develops, produces and delivers hydropower turbines, control systems and associated equipment for clients and projects worldwide. The company supplies equipment for new installations and performs upgrades of existing hydropower plants. Rainpower has more than 165 years of history dating back to 1853 when the Norwegian hydropower competence was developed by Kvaerner. The company has been involved in some of the world’s largest projects within hydropower development, including the Three Gorges Dam in China.

“The world needs to take significant steps to reduce carbon emissions, and this will unlock large investments across multiple industries. 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,” says Kjetel Digre, chief executive officer of Aker Solutions.

Aker Solutions has agreed to acquire 100% of the shares in Rainpower from a subsidiary of Aker Horizons, which announced an acquisition of Rainpower in January 2021. Aker Solutions and Rainpower have collaborated on both technical and strategic topics over the past year. Through this collaboration it has become apparent that Aker Solutions has complimentary capabilities with Rainpower and is well positioned to realise the potential of the hydropower technology company.

“There is a growing market for upgrading the existing installed base of hydropower to reflect the needs of the renewable power markets moving forward. 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,” says Hege Brende, chief executive officer of Rainpower.

“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,” says Digre.

The transaction is expected to be completed during the second quarter of 2022. The purchase price is about NOK 100 million, with an additional discretionary element which may bring the purchase price to NOK 150 million. A third-party valuation report has been obtained and the transaction remains subject to various closing conditions, including certain third-party approvals.