In March 2024 Iberdrola offered to buy the 18.4 percent of Avangrid it did not already own. Two months later it signed at a higher price. Seven months after that, the deal closed, completing a buyout Iberdrola launched with the aim of delisting Avangrid from the New York Stock Exchange. The headline number is a $4.47 billion enterprise value. The more useful number is what that price says about the whole company.
Key takeaways
- Iberdrola signed an agreement on 17 May 2024 to acquire the 18.4 percent of its US subsidiary Avangrid that it did not already own, at $35.75 per share, taking full ownership.
- Enerdatics calculates the enterprise value of Iberdrola's acquisition of 18.4 percent of Avangrid at $4.47 billion, based on an equity consideration of $2.55 billion and Avangrid's net debt of $10.43 billion at 31 March 2024 on a 100 percent basis.
- Iberdrola's agreed price of $35.75 per Avangrid share was an 11.4 percent premium to the closing price on 6 March 2024, and up from the $34.25 per share Iberdrola first offered in March 2024.
- Avangrid has an operational portfolio of 9.81 GW, of which about 8.97 GW is renewable, and reported 12-month revenue of $8.26 billion and EBITDA of $2.26 billion as of 31 March 2024.
- Iberdrola completed the acquisition of the remaining 18.4 percent of Avangrid on 23 December 2024, after FERC, shareholder and New York regulatory approvals.
How did the deal move from offer to signing?
It moved up by $1.50 a share. Iberdrola's first offer in March 2024 was $34.25 per share, a 10 percent premium to the weighted average share price of the previous 30 days. The agreement signed on 17 May set the price at $35.75.
That final price was an 11.4 percent premium to Avangrid's closing price on 6 March 2024, and a 15.2 percent premium to the volume-weighted average over the 30 trading days before that date. The increase from first offer to signed agreement was about 4.4 percent.
A minority buyout works this way because the controlling shareholder needs the independent holders to accept. Iberdrola already owned about 81.6 percent. The remaining investors had one thing to negotiate, the price, and they secured a modest improvement before agreeing.
What was the timeline from signing to completion?
Seven months, in four regulatory and corporate steps. Avangrid received approval from FERC, the US federal energy regulator, on 5 September 2024. Shareholders approved the takeover on 26 September. The New York regulator gave its approval on 20 December, and the transaction completed on 23 December 2024.
The New York step mattered because Avangrid's networks business serves more than 3.3 million customers in New York and New England. A change of control at a regulated utility owner needs the state regulator's consent, and that was the last approval to arrive. In the meantime, Avangrid expected to keep paying regular quarterly dividends of no more than $0.44 per share until closing.
What does $4.47 billion say about the whole company?
It values Avangrid at a little under 11 times its earnings. Enerdatics' enterprise value counts the $2.55 billion equity consideration plus 18.4 percent of Avangrid's $10.43 billion net debt. Scaled to 100 percent, the equity price implies about $13.86 billion for the whole company, or an enterprise value of about $24.29 billion once net debt is added.
Against 12-month EBITDA of $2.26 billion, that is an enterprise value of about 10.7 times EBITDA. EBITDA, earnings before interest, tax, depreciation and amortisation, is the standard measure of cash earnings for utilities and infrastructure businesses.
The multiple is not very sensitive to which earnings figure is used. Avangrid reported an adjusted gross operating profit, EBITDA including tax credits, of $2.43 billion for 2023. On that basis the implied multiple falls to about 10 times. Either way, Iberdrola paid for a company with $44 billion of assets, operations in 24 states and $8.26 billion of annual revenue at a price close to ten times a year's earnings.
A price per MW would mislead here. Leap's record carries a capacity of more than 37 GW because it counts the 9.81 GW operational fleet, about 2 GW under construction and a pipeline of about 25 GW. On top of that, much of Avangrid's value sits in regulated networks that have no MW figure at all. Earnings multiples are the right lens for a company like this.
Enerdatics' data shows that Iberdrola paid close to the middle of the US market. Across 154 corporate energy transition deals in the United States announced between January 2023 and June 2025, 13 disclose enough to calculate an EV to EBITDA multiple. Their median is 11.51 times, with the middle half of the range running from 8.69 to 21.9 times. At about 10.7 times, the Avangrid buyout sits just below that median.
What does the deal signal for US utilities and renewables?
It signals that the strategic prize was the networks business, not the wind farms. Leap records the objective as increasing exposure to the US network business in markets with high credit ratings. Avangrid's network businesses include NYSEG, RG&E, CMP and UI, among others. Regulated grids earn a return set by regulators, which makes them steadier than generation.
The renewables arm still comes with it. Avangrid's operational fleet includes about 8 GW of onshore wind, 733 MW of solar, 65 MW of offshore wind and 131 MW of hydro and fuel cells, plus the 636 MW Klamath gas-fired cogeneration plant and 204 MW of peaking units. Roughly 78 percent of operating capacity is contracted under long-term PPAs, with an average remaining contract life of about nine years and a weighted average realised price to date of $49 per MWh. The 806 MW Vineyard Wind 1 offshore project is part of the 2 GW under construction.
Delisting, Iberdrola's stated aim, gives it what Leap describes as more corporate maneuverability. Iberdrola can now fund Avangrid from the group balance sheet without a minority to consider, using tools such as the hybrid bonds Iberdrola issues at group level, while selling down stakes elsewhere, as in its Iberian portfolio sale to Norges Bank. Owning 100 percent of a US grid business is the opposite move, and it shows where Iberdrola wants its capital to sit.
Frequently asked questions
How much did Iberdrola pay for the rest of Avangrid? Iberdrola paid $35.75 per share for the 18.4 percent of Avangrid it did not own, an equity consideration of $2.55 billion. Enerdatics calculates the enterprise value of the transaction at $4.47 billion.
When did Iberdrola complete the Avangrid acquisition? The agreement was signed on 17 May 2024 and the transaction completed on 23 December 2024, after FERC approval in September, shareholder approval on 26 September and New York regulatory approval on 20 December.
Who advised on Iberdrola's acquisition of Avangrid? Morgan Stanley was financial adviser and White & Case and Clifford Chance were legal advisers to Iberdrola. Moelis & Company was financial adviser and Paul, Weiss and Latham & Watkins were legal advisers to Avangrid.
Ready to get deal-ready answers in seconds? Try Enerdatics Leap AI and access verified intelligence across M&A, financings, PPAs, projects, and energy market developments through natural language.
.jpeg)
