TransAlta Closes Acquisition of Heartland Generation
TransAlta has completed the acquisition of Heartland Generation and Alberta Power (2000) from Energy Capital Partners for a total purchase price of $542 million. The net cash payment was $215 million before working capital adjustments, reduced by $95 million to reflect Heartland's economic benefit since October 31, 2023.
To comply with federal Competition Bureau requirements, TransAlta agreed to divest Heartland's Poplar Hill and Rainbow Lake assets post-closing, with proceeds going to ECP. TransAlta is a major Canadian power generation company, being the largest hydroelectric power producer in Alberta and one of Canada's largest wind power producers.
TransAlta ha completato l'acquisizione di Heartland Generation e Alberta Power (2000) da Energy Capital Partners per un prezzo di acquisto totale di 542 milioni di dollari. Il pagamento netto in contante è stato di 215 milioni di dollari, prima delle regolazioni sul capitale circolante, ridotto di 95 milioni per riflettere il beneficio economico di Heartland a partire dal 31 ottobre 2023.
Per conformarsi ai requisiti del Bureau della concorrenza federale, TransAlta ha concordato di cedere gli asset Poplar Hill e Rainbow Lake di Heartland dopo la chiusura, con i proventi destinati a ECP. TransAlta è una delle principali aziende di generazione di energia in Canada, essendo il maggiore produttore di energia idroelettrica in Alberta e uno dei più grandi produttori di energia eolica del Canada.
TransAlta ha completado la adquisición de Heartland Generation y Alberta Power (2000) de Energy Capital Partners por un precio total de compra de 542 millones de dólares. El pago neto en efectivo fue de 215 millones de dólares antes de los ajustes de capital de trabajo, reducido en 95 millones para reflejar el beneficio económico de Heartland desde el 31 de octubre de 2023.
Para cumplir con los requisitos de la Oficina de Competencia federal, TransAlta acordó desinvertir los activos Poplar Hill y Rainbow Lake de Heartland después del cierre, con los ingresos destinados a ECP. TransAlta es una importante empresa canadiense de generación de energía, siendo el mayor productor de energía hidroeléctrica en Alberta y uno de los mayores productores de energía eólica de Canadá.
TransAlta는 Energy Capital Partners로부터 Heartland Generation과 Alberta Power (2000)를 총 5억 4200만 달러에 인수 완료했습니다. 순 현금 지급액은 운전 자본 조정 전 2억 1500만 달러였으며, 2023년 10월 31일 이후 Heartland의 경제적 이익을 반영하여 9500만 달러가 감소했습니다.
연방 경쟁국의 요구 사항을 준수하기 위해 TransAlta는 마감 후 Heartland의 Poplar Hill 및 Rainbow Lake 자산을 매각하기로 합의했으며, 수익금은 ECP로 전달됩니다. TransAlta는 캐나다의 주요 전력 생성 회사로, 앨버타에서 가장 큰 수력 발전소 운영자이며 캐나다에서 가장 큰 풍력 발전소 생산자 중 하나입니다.
TransAlta a finalisé l'acquisition de Heartland Generation et Alberta Power (2000) auprès d'Energy Capital Partners pour un prix d'achat total de 542 millions de dollars. Le paiement net en espèces était de 215 millions de dollars avant les ajustements du fonds de roulement, réduit de 95 millions de dollars pour refléter le bénéfice économique de Heartland depuis le 31 octobre 2023.
Pour se conformer aux exigences du Bureau de la concurrence fédéral, TransAlta a accepté de céder les actifs de Heartland à Poplar Hill et Rainbow Lake après la clôture, les produits étant destinés à ECP. TransAlta est une grande entreprise canadienne de production d'énergie, étant le plus grand producteur d'énergie hydroélectrique en Alberta et l'un des plus grands producteurs d'énergie éolienne au Canada.
TransAlta hat die Übernahme von Heartland Generation und Alberta Power (2000) von Energy Capital Partners zu einem Gesamtpreis von 542 Millionen Dollar abgeschlossen. Die Nettobarzahlung betrug 215 Millionen Dollar vor Anpassungen des Working Capitals und wurde um 95 Millionen Dollar reduziert, um den wirtschaftlichen Vorteil von Heartland seit dem 31. Oktober 2023 widerzuspiegeln.
Um den Anforderungen des Bundesamts für Wettbewerb nachzukommen, hat TransAlta vereinbart, die Vermögenswerte von Heartland in Poplar Hill und Rainbow Lake nach dem Abschluss abzustoßen, wobei die Erlöse an ECP gehen. TransAlta ist ein bedeutendes kanadisches Unternehmen in der Stromerzeugung und der größte Hersteller von Wasserkraft in Alberta sowie einer der größten Hersteller von Windenergie in Kanada.
- Acquisition expands TransAlta's power generation portfolio in Alberta and British Columbia
- Strategic acquisition price reduced by $95 million due to economic benefits
- Net cash payment of only $215 million for a $542 million acquisition value
- Mandatory divestiture of Poplar Hill and Rainbow Lake assets required by Competition Bureau
- Proceeds from required asset sales will go to ECP, not TransAlta
Insights
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The required divestiture of Poplar Hill and Rainbow Lake assets to meet competition requirements will partially offset the acquisition cost, though the final impact depends on the sale proceeds. This deal strengthens TransAlta's position as a major power producer in Alberta, complementing its existing hydroelectric and wind portfolio. The transaction should provide immediate operational synergies and enhance TransAlta's market presence in Western Canada.
The timing and structure of the deal, including the economic benefit adjustment from October 2023, suggests careful financial engineering to optimize the transaction value. This acquisition aligns with TransAlta's strategy of growing its power generation portfolio while maintaining financial flexibility.
This acquisition significantly reshapes the Alberta power generation landscape, consolidating TransAlta's position as a dominant player in the region's electricity market. By acquiring Heartland's operations across Alberta and British Columbia, TransAlta gains additional generation capacity and market share, though the required divestiture of certain assets indicates regulatory attention to market concentration.
The deal enhances TransAlta's diverse generation mix, which already includes significant wind and hydroelectric assets. This portfolio diversification helps manage market risks and positions the company well for the ongoing energy transition. The acquisition complements TransAlta's existing operations and should create operational efficiencies while strengthening its competitive position in Western Canada's power markets.
CALGARY, Alberta, Dec. 04, 2024 (GLOBE NEWSWIRE) -- TransAlta Corporation (TSX: TA; NYSE: TAC) ("TransAlta" or "Company") announced today that it has completed its acquisition of Heartland Generation Ltd. and Alberta Power (2000) Ltd. (collectively, "Heartland") from Energy Capital Partners ("ECP"). The acquisition, which includes Heartland's entire business operations in Alberta and British Columbia, was completed for an aggregate purchase price of
As previously disclosed, in order to meet the requirements of the federal Competition Bureau, TransAlta entered into a consent agreement with the Commissioner of Competition pursuant to which TransAlta agreed to divest Heartland's Poplar Hill and Rainbow Lake assets following closing. ECP will be entitled to receive the proceeds from the divestiture. The sales process for these assets will be commenced shortly.
For further details about this transaction, please refer to our news release dated November 14, 2024.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydroelectric power. For over 113 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also define sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information", within the meaning of applicable Canadian securities laws, and "forward-looking statements", within the meaning of applicable United States securities laws, including the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "plans", "expects", "proposed", "will", "would", "anticipates", "develop", "continue", "estimate", and similar expressions suggesting future events or future performance. In particular, this news release contains, without limitation, statements pertaining to sales process for the Poplar Hill and Rainbow Lake assets. The forward-looking statements contained in this news release are based on many assumptions and are subject to a number of significant risks, uncertainties and assumptions that could cause actual plans, performance, results or outcomes to differ materially from current expectations. Factors that may adversely impact what is expressed or implied by forward-looking statements contained in this news release include, but are not limited to risks and uncertainties discussed in the Company's materials filed with the securities regulatory authorities from time to time and as also set forth in the Company's MD&A and Annual Information Form for the year ended December 31, 2023. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For more information about TransAlta, visit our web site at transalta.com.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
For more information:
| Investor Inquiries: | Media Inquiries: |
| Phone: 1-800-387-3598 in Canada and U.S. | Phone: 1-855-255-9184 |
| Email: investor_relations@transalta.com | Email: ta_media_relations@transalta.com |
FAQ
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