Brookfield and Quebec-based institutional investor La Caisse announced an agreement to acquire Quebec-based global renewable energy platform Boralex, in a deal valuing the company at an enterprise value of USD$6.5 billion.

Under the terms of the agreement, which has been approved by Boralex’s Board of Directors, Brookfield will acquire a 70% stake in Boralex, with La Caisse, who is currently Boralex’s largest shareholder with a 15% stake, will make a post-closing investment to bring its stake to 30%.

Boralex currently has approximately 3.8 GW of wind, solar, hydro and battery energy storage assets across Canada, France, the U.S., and the UK, with over 90% contracted for an average term of 10 years, and a project pipeline which includes 1.6 GW of advanced-stage development projects, and an additional 5.6 GW megawatts at mid- and early-stage.

The company said that the backing from Brookfield and La Caisse will enable it to accelerate the development of its project pipeline in core markets.

In addition to accelerating Boralex’s pipeline development, Brookfield and La Caisse said that they will also establish a disciplined capital recycling program at the company, supporting a growth model of recycling capital into higher-return opportunities.