Drax Group (LSE:DRX), the UK renewable energy company, has announced it will buy Bluefield Solar Income Fund (BSIF), a listed owner of UK solar, wind and storage assets, for 92.574p in cash per share.
Bluefield shareholders will also receive a Permitted Dividend of 2.25p, giving a total cash value of 94.824p per share.
The cash consideration values BSIF’s issued share capital at c.£548m (c.£561m including the Permitted Dividend).
Buying BSIF brings c.851.8MW of operating capacity (c.793.5MW solar, c.58.3MW wind), a proprietary development pipeline of 946MW solar and 1,915MW BESS, and for the year to 30 June 2025 reported underlying earnings c.£95m, EBITDA c.£130m and operating free cash flow c.£118m.
Drax says the deal expands its UK renewables scale, complements its c.2.2GW FlexGen and c.2.6GW biomass portfolio, and offers contracted cash flows and route-to-market synergies.
"BSIF could potentially be the biggest acquisition our business has ever made," said Will Gardiner, CEO of Drax.
The acquisition will be subject to shareholder and court approval and the UK National Security and Investment Condition, and is expected to become Effective during Q3.
Using the disclosed figures, the implied EV/EBITDA is roughly 8.3x and adding BSIF’s c.£130m EBITDA to Drax’s reported adjusted EBITDA of c.£947m for the year to 31 December 2025 would lift pro forma EBITDA to about c.£1,077m.
