The Carlyle Group to Acquire Six Power Plants in California, New Jersey
September 09 2013 - 7:00AM
Business Wire
Global alternative asset manager The Carlyle Group (NASDAQ:CG),
today announced it has agreed to acquire the Red Oak power
generation facility in Sayreville, New Jersey, and has separately
closed on the purchase of five power plants in California. The
acquisitions, which were executed in conjunction with Carlyle’s
power affiliate Cogentrix, bring the total enterprise value of
power asset transactions since Carlyle funds acquired Cogentrix in
late 2012 to more than $1.2 billion.
Robert Mancini, Carlyle Managing Director and Chairman of the
Board of Cogentrix, said, “Since Carlyle funds acquired Cogentrix,
our power team has committed approximately $600 million of equity
capital. The North American power generation sector is evolving,
and we see significant opportunities, both in the form of
acquisitions and development, to create value for our
investors.”
Red Oak, which is being acquired from Energy Capital Partners,
is a highly efficient, 823-MW natural gas-fired combined-cycle
power plant located in Sayreville, New Jersey. Red Oak currently
operates under a long-term power purchase agreement and is part of
the PJM Interconnection, the world’s largest and most liquid
competitive power market.
The five California power generation facilities, together
accounting for 320 MW, include the 122-MW Midway natural gas-fired
plant in Firebaugh, California, as well as the CalPeak portfolio of
four natural gas-fired plants totaling 198 MW in Escondido,
Firebaugh, San Diego and Vacaville, California. Carlyle is
acquiring the Midway plant from an affiliate of Starwood Energy
Group Global LLC (Starwood) and the CalPeak portfolio from the
Blackstone Group L.P.’s GSO Capital Partners as well as affiliates
of Starwood and Tyr Energy.
Equity capital for the transactions, terms of which were not
disclosed, comes from Carlyle Power Opportunities Capital Partners
L.P., a power managed account, and Carlyle Infrastructure Partners,
L.P., a $1.2 billion infrastructure fund. The Red Oak acquisition
is subject to customary closing conditions.
Added Mr. Mancini, “Red Oak is an attractive investment because
it benefits from stable cash flow generation and is strategically
located in a market that should benefit from strong secular trends.
The California plants are all highly responsive and flexible
facilities that represent important resources for transmission grid
support and providing reliable power during periods of peak demand
within California.”
Cogentrix, a portfolio company of Carlyle Power Opportunities
Capital Partners and Carlyle Infrastructure Partners, is a
developer, operator and manager of independent power plants in
North America. Founded in 1983, Cogentrix has been directly
responsible for the development, engineering, construction,
operation and management of a portfolio totaling 40 fossil and
renewable power facilities with a combined generating capability of
around 8,000 megawatts.
About The Carlyle Group
The Carlyle Group (NASDAQ:CG) is a global alternative asset
manager with $180 billion of assets under management across 118
funds and 81 fund of funds vehicles as of June 30, 2013. Carlyle's
purpose is to invest wisely and create value on behalf of its
investors, many of whom are public pensions. Carlyle invests across
four segments – Corporate Private Equity, Real Assets, Global
Market Strategies and Global Solutions – in Africa, Asia,
Australia, Europe, the Middle East, North America and South
America. Carlyle has expertise in various industries, including:
aerospace, defense & government services, consumer &
retail, energy, financial services, healthcare, industrial,
technology & business services, telecommunications & media
and transportation. The Carlyle Group employs more than 1,400
people in 34 offices across six continents.
Web: www.carlyle.comVideos: www.youtube.com/onecarlyleTweets:
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