Platinum Equity to Acquire Hunterstown Power Generation Facility From GenOn Energy
February 27 2018 - 5:30PM
Platinum Equity announced today that it has signed a definitive
agreement to acquire GenOn’s Hunterstown power
generation facility and related assets in a transaction valued at
approximately $520 million. GenOn, a unit of NRG
Energy Inc. (NYSE:NRG), filed for bankruptcy protection
in June 2017.
The acquisition is subject to regulatory
approval and is expected to close in the second quarter of 2018.
Located in Gettysburg, Pennsylvania, the
Hunterstown facility is a combined-cycle gas turbine generating
power plant that provides 810 MW to the PJM (Met-Ed) 500kV
grid, with enough to supply more than 648,000 homes.
The investment offers a compelling mix of
elements that correspond with Platinum Equity’s M&A&O®
strategy, which emphasizes entry price, downside protection and
operational excellence to create value.
“The power generation industry continues to
experience some dislocation, which is fueling corporate carve out
activity,” said Platinum Equity Partner Louis Samson. “Hunterstown
is well maintained and features industry-leading technology. It
operates in PJM, the largest electricity market in the United
States, and generates strong recurring revenue streams.”
Mr. Samson said Platinum Equity is actively
looking for add-on opportunities
for the Hunterstown asset as well as additional
platform investments in the power generation market.
“We believe that the dynamics prevailing in this
sector will continue to create attractive opportunities for us to
acquire assets and create value,” added Mr. Samson.
AOS Energy Partners provided consulting services
to Platinum Equity in connection with
the Hunterstown acquisition and will co-invest in the
transaction. AOS is expected to remain active with the investment
going forward.
Financing will be led by Morgan
Stanley and Latham & Watkins is acting as legal counsel to
Platinum Equity on the Hunterstown acquisition.
About Platinum EquityFounded in
1995 by Tom Gores, Platinum Equity is a global investment firm with
$13 billion of assets under management and a portfolio of more than
30 operating companies that serve customers around the world. The
firm is currently investing from Platinum Equity Capital Partners
IV, a $6.5 billion global buyout fund. Platinum Equity specializes
in mergers, acquisitions and operations – a trademarked strategy it
calls M&A&O® – acquiring and operating companies in a broad
range of business markets, including manufacturing, distribution,
transportation and logistics, equipment rental, metals services,
media and entertainment, technology, telecommunications and other
industries. Over the past 22 years Platinum Equity has completed
more than 200 acquisitions.
Contacts:
Dan Whelan, Platinum Equity
(310) 282-9202
dwhelan@platinumequity.com
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