PE Deals

Capital Power, Manulife to buy gas-fired cogeneration facility MCV

The purchase price is $894 million.

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  • The seller is OMERS Infrastructure
  • The deal is expected to close in the third quarter of this year
  • Capital Power is a North American wholesale power producer

Capital Power Corp has partnered with Manulife Investment Management to acquire MCV, the Midland, Michigan-based owner of Midland Cogeneration Venture, a natural gas combined-cycle cogeneration facility. The purchase price is $894 million.

The seller is OMERS Infrastructure. The deal is expected to close in the third quarter of this year.

Under the 50/50 joint venture with Manulife Investment Management, Capital Power and its joint venture partner will each contribute approximately $186 million subject to working capital and other closing adjustments.

“We are pleased to partner with Manulife Investment Management on the acquisition of Midland Cogen, which is consistent with our strategy of acquiring mid-life contracted natural gas assets that are strategically positioned within their power markets,” said Brian Vaasjo, president and CEO of Capital Power, in a statement. “The transaction provides immediate adjusted funds from operations accretion and is supported by highly contracted cash flows to 2030 and 2035 from long standing counterparties.”

OMERS initially acquired an 100 percent stake in MCV in 2012 and subsequently syndicated a minority interest to third-party investors in the Global Strategic Investment Alliance investment program in 2013.

Capital Power is a North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. It owns about 6,600 MW of power generation capacity at 27 facilities.

Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corp. It is headquartered in Toronto.