Enbridge buys U.S. wind and solar power developer Tri Global Energy

Enbridge Inc. has bought Tri Global Energy (TGE), a U.S. renewable power project developer, for $270 million US in cash and assumed debt.

The company will also pay up to an additional $50 million US contingent on successful execution of TGE's project portfolio.

Enbridge said Thursday that TGE is the third largest onshore wind developer in the U.S. with a development portfolio of wind and solar projects representing more than seven gigawatt's of renewable generation capacity.

Enbridge chief executive Al Monaco said TGE will enhance Enbridge's renewable platform and accelerate the company's North American growth strategy.

"TGE's significant development pipeline, coupled with our renewable capabilities, and existing self-power opportunities, make this a truly synergistic investment that further positions us to grow organically at attractive equity returns," Monaco said in a statement.

The company said TGE's development team will remain in place, ensuring the continuity of ongoing development activities.

TGE's development portfolio includes 3.9 gigawatts of renewable generation projects it previously sold to operators, that will generate development fees and accretion to distributable cash flow per share in the first year following the acquisition.

Enbridge said the TGE team has developed and monetized over six gigawatts of utility scale renewable projects since its inception in 2009.

BMO Capital Markets analyst Ben Pham said in a note to clients that he believes Enbridge is using the money from recent asset sales to fund the transaction, and sees "potential for additional growth opportunities, including modest-sized M&A."

BMO has an "outperform" rating on Enbridge.