The Carlyle Group has agreed to acquire Entergy Corp’s stake in the Rhode Island State Energy Center for $490 million. Based in Johnston, Rhode Island, RISEC is a power plant.
Washington, DC – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has agreed to acquire 100% of the interests in the Rhode Island State Energy Center (RISEC), a 583 MW natural-gas fired power plant located in Johnston, Rhode Island, from subsidiaries of Entergy Corp. (NYSE: ETR). Carlyle agreed to pay $490 million, inclusive of working capital and subject to certain purchase price adjustments. Equity capital for the transaction will come from Carlyle Power Partners II L.P and Carlyle Power Opportunities Capital Partners L.P.
Matt O’Connor, Carlyle Managing Director and Co-Head of Carlyle Power Partners, said, “RISEC is among the most efficient combined cycle facilities in New England and is well-positioned to capitalize on strong regional market dynamics. New England represents an attractive market for investment due to its transparency and incentives for reliable generation. Additionally, the retirement of aging generation in the region is putting a greater emphasis on efficient gas-fired generators, like RISEC, to meet everyday electricity demand.”
RISEC, currently owned by subsidiaries of Entergy Corp., is a 583 MW, natural gas-fired power plant, which began commercial operations in 2002. The plant is located in Johnston, Rhode Island, near some of New England’s largest demand centers. The plant participates in New England’s deregulated wholesale power market.
The acquisition is being done in conjunction with Carlyle’s portfolio company Cogentrix Energy Power Management, LLC (Cogentrix) and increases the size of Carlyle’s power generation portfolio to 18 power plants totaling more than 4,900 gross MW
The acquisition is subject to customary closing conditions.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $193 billion of assets under management across 128 funds and 159 fund of funds vehicles as of June 30, 2015. 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 1,700 people in 35 offices across six continents.