PLATINUM EQUITY COMPLETES SALE OF HUNTERSTOWN POWER GENERATION FACILITY TO LS POWER
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.
Platinum Equity ha completato la vendita della centrale di produzione energetica Hunterstown a LS Power. L'impianto, situato a Gettysburg, Pennsylvania, è una centrale a gas a ciclo combinato da 810 MW in grado di fornire energia a oltre 600.000 abitazioni. Platinum Equity ha acquisito l'impianto nel 2018 da GenOn, una unità di NRG Energy Inc. (NYSE: NRG), durante il suo fallimento. La vendita dimostra la strategia di Platinum Equity di creare valore attraverso scolpimenti aziendali e miglioramenti operativi. Sebbene i termini finanziari non siano stati divulgati, l'azienda ha evidenziato l'elevato flusso di cassa libero e i solidi ricavi ricorrenti dell'impianto. Evercore ha funzionato come consulente finanziario e Latham & Watkins LLP ha fornito consulenza legale a Platinum Equity per la transazione.
Platinum Equity ha completado la venta de la planta de generación de energía Hunterstown a LS Power. La instalación, ubicada en Gettysburg, Pennsylvania, es una planta de turbina de gas de ciclo combinado de 810 MW capaz de abastecer a más de 600,000 hogares. Platinum Equity adquirió la instalación en 2018 de GenOn, una unidad de NRG Energy Inc. (NYSE: NRG), durante su quiebra. La venta demuestra la estrategia de Platinum Equity de crear valor a través de desinversiones corporativas y mejoras operativas. Aunque no se revelaron los términos financieros, la compañía destacó el alto flujo de caja libre y los sólidos ingresos recurrentes de la instalación. Evercore actuó como asesor financiero y Latham & Watkins LLP proporcionó asesoría legal a Platinum Equity para la transacción.
플래티넘 이쿼티가 헌터스타운 발전소를 LS 파워에 매각 완료했습니다. 펜실베이니아주 게티스버그에 위치한 이 시설은 810 MW 복합 사이클 가스터빈 발전소로, 60만 가구 이상의 전력을 공급할 수 있습니다. 플래티넘 이쿼티는 2018년 NRG 에너지(NYSE: NRG)의 자회사인 제논에서 이 시설을 인수했습니다. 이 매각은 플래티넘 이쿼티의 기업 분할 및 운영 개선을 통한 가치 창출 전략을 보여줍니다. 재무 조건은 공개되지 않았지만, 회사는 시설의 높은 자유 현금 흐름과 강력한 반복 매출을 강조했습니다. 에버코어는 재무 자문 역할을 했고, 라탐 & 와트킨스 LLP는 거래에 대한 플래티넘 이쿼티의 법률 자문을 제공했습니다.
Platinum Equity a achevé la vente de l’installations de production d'énergie Hunterstown à LS Power. L'installation, située à Gettysburg, Pennsylvanie, est une centrale à turbine à gaz à cycle combiné de 810 MW capable d'alimenter plus de 600 000 foyers. Platinum Equity a acquis l'installation en 2018 auprès de GenOn, une filiale de NRG Energy Inc. (NYSE : NRG), lors de sa faillite. La vente illustre la stratégie de Platinum Equity de créer de la valeur grâce à des désengagements d'entreprise et des améliorations opérationnelles. Bien que les termes financiers n'aient pas été divulgués, la société a souligné le fort flux de trésorerie libre et les revenus récurrents solides de l'installation. Evercore a servi de conseiller financier et Latham & Watkins LLP a fourni des conseils juridiques à Platinum Equity pour la transaction.
Platinum Equity hat den Verkauf der Kraftwerksanlage Hunterstown an LS Power abgeschlossen. Die Anlage, die sich in Gettysburg, Pennsylvania, befindet, ist ein 810 MW kombinierter Gas-Turbinen-Kraftwerk, das in der Lage ist, über 600.000 Haushalte mit Strom zu versorgen. Platinum Equity erwarb die Anlage 2018 von GenOn, einer Einheit von NRG Energy Inc. (NYSE: NRG), während deren Insolvenz. Der Verkauf zeigt die Strategie von Platinum Equity, durch Unternehmensausgliederungen und betriebliche Verbesserungen Wert zu schaffen. Obwohl keine finanziellen Details bekannt gegeben wurden, hob das Unternehmen den hohen freien Cashflow und die starken wiederkehrenden Einnahmen der Anlage hervor. Evercore fungierte als Finanzberater und Latham & Watkins LLP bot rechtlichen Rat für die Transaktion an.
- 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
- None.
Insights
The completion of the sale of the Hunterstown power generation facility by Platinum Equity to LS Power highlights the dynamic nature of asset management within the energy sector. It's worth noting that the transaction took place without disclosed financial terms, making it harder to evaluate immediate financial impact.
However, the sale is significant because it marks a strategic divestment by Platinum Equity, which had managed to turn around an asset acquired during a period of distress. The facility's high free cash flow and strong recurring revenue indicate that it was a profitable asset under Platinum’s management.
For LS Power, acquiring an 810 MW facility capable of supplying power to more than 600,000 homes represents a substantial boost to their portfolio, likely aimed at strengthening their position in the PJM market. This move could be a part of LS Power’s strategy to enhance their renewable energy portfolio, given the increasing regulatory and market pressures towards sustainable energy solutions.
Long-term investors should consider the implications of this acquisition for LS Power’s overall strategy and future earnings. Additionally, the deal underscores the importance of distressed asset acquisition strategies in generating value, a hallmark of Platinum Equity's approach.
This transaction also sheds light on market trends and investment opportunities within the energy sector, especially in the PJM Interconnection, which coordinates the movement of wholesale electricity in parts of the Eastern U.S. The acquisition of a combined-cycle gas turbine plant is particularly interesting given the ongoing discussions around energy transition and the shift towards low-carbon and renewable energy sources.
The deal may reflect LS Power’s confidence in the stability and profitability of natural gas as a transitional energy source. Combined-cycle plants like Hunterstown are known for their higher efficiency and lower emissions compared to traditional fossil fuel plants. This positions LS Power to benefit from both regulatory support for cleaner energy and the sustained demand for reliable power generation.
For retail investors, understanding these broader market movements and the strategic motivations behind such acquisitions can provide valuable insight into potential investment opportunities in the energy sector.
Financial terms were not disclosed.
Located in
"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
Contacts:
Dan Whelan
Platinum Equity
dwhelan@platinumequity.com
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SOURCE Platinum Equity
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