PLATINUM EQUITY COMPLETES SALE OF HUNTERSTOWN POWER GENERATION FACILITY TO LS POWER

Rhea-AI Summary

Platinum Equity has completed the sale of the Hunterstown power generation facility to LS Power. The facility, located in Gettysburg, Pennsylvania, is a 810 MW combined-cycle gas turbine plant capable of powering over 600,000 homes. Platinum Equity acquired the facility in 2018 from GenOn, a unit of NRG Energy Inc. (NYSE: NRG), during its bankruptcy. The sale demonstrates Platinum Equity's strategy of creating value through corporate carveouts and operational improvements. While financial terms were not disclosed, the company highlighted the facility's high free cash flow and strong recurring revenue. Evercore served as financial advisor and Latham & Watkins LLP provided legal counsel to Platinum Equity for the transaction.

Positive

• Successful completion of the sale of Hunterstown power generation facility
• Facility has high free cash flow and strong recurring revenue
• Demonstrated ability to create value through corporate carveouts and operational improvements

Negative

• None.

LOS ANGELES, July 19, 2024 /PRNewswire/ -- Platinum Equity announced today that the sale of the Hunterstown power generation facility and related assets to LS Power has been completed.

Financial terms were not disclosed.

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 600,000 homes.

"Hunterstown is a good example of how Platinum can use its playbook to create value in different ways," said Platinum Equity Co-President Louis Samson. "The Hunterstown facility is an outstanding asset, with high free cash flow and strong recurring revenue, acquired from a seller that needed a divestiture solution during a time of distress, so it checked a lot of the boxes we typically look for. Our experience with corporate carveouts and our willingness to be open minded put us in position to help."

Platinum Equity acquired the facility in 2018 from GenOn, a unit of NRG Energy Inc. (NYSE: NRG), which had filed for bankruptcy protection in June 2017, and managed it as a standalone business in the firm's portfolio.

"Hunterstown performed well and benefited from meaningful investment and operational oversite during our ownership," said Platinum Equity Managing Director David Glatt. "We then found a new home for the facility with a buyer who is a natural fit for the long term. We are proud of the outcome and will continue seeking opportunities to put our M&A capabilities to work in creative ways."

Evercore served as financial advisor to Platinum Equity on the sale of Hunterstown and Latham & Watkins LLP provided legal counsel to Platinum Equity.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $48 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. 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 28 years Platinum Equity has completed more than 450 acquisitions.

Contacts:

Dan Whelan
Platinum Equity
dwhelan@platinumequity.com

 

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SOURCE Platinum Equity

FAQ

What is the capacity of the Hunterstown power generation facility sold by Platinum Equity?

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 capacity to supply more than 600,000 homes.

When did Platinum Equity acquire the Hunterstown facility from NRG Energy (NYSE: NRG)?

Platinum Equity acquired the Hunterstown facility in 2018 from GenOn, a unit of NRG Energy Inc. (NYSE: NRG), which had filed for bankruptcy protection in June 2017.

Who purchased the Hunterstown power generation facility from Platinum Equity?

LS Power purchased the Hunterstown power generation facility from Platinum Equity. The sale was completed as announced on July 19, 2024.

Where is the Hunterstown power generation facility located?

The Hunterstown power generation facility is located in Gettysburg, Pennsylvania.