Carlyle has agreed to acquire a majority stake in Southeast PowerGen, which has six natural gas-fired power plants in Georgia. The sellers are ArcLight Capital Partners, Singapore-based sovereign wealth fund GIC and GE Energy Financial Services. No financial terms were disclosed.
Washington, DC – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has agreed to acquire 75.05% of the outstanding interests and operational control of Southeast PowerGen, a portfolio of six natural gas-fired power plants in Georgia, from ArcLight Capital Partners and GIC, Singapore’s sovereign wealth fund. Equity capital for the transaction, terms of which were not disclosed, will come from Carlyle Power Opportunities Capital Partners L.P. and Carlyle Power Partners II L.P. The acquisition increases the size of Carlyle’s power generation portfolio to more than 4,300 MW.
Matt O’Connor, Carlyle Managing Director and Co-Head of Carlyle Power Partners, said, “Southeast PowerGen is an attractive investment because of its strategic importance to the Georgia electric power market and its stable cash flow generation. The Southeast region is seeing a resurgence of industrial growth and we believe these plants are well-positioned to capitalize on favorable market dynamics.”
Southeast PowerGen, presently owned by a consortium of ArcLight Capital Partners, GIC and GE Energy Financial Services, consists of two natural gas-fired combined-cycle power generation facilities and four natural gas-fired peaking facilities totaling 2,815 MWs. Southeast PowerGen is a portfolio of contracted assets located in a region highlighted by some of the strongest electricity demand growth in the country and pending retirements of thousands of megawatts coal-fired power generation. The portfolio consists of highly responsive and flexible facilities that represent important resources for the regional mark and provides reliable power during periods of peak demand.
Added Mr. O’Connor, “Since Carlyle funds acquired Cogentrix in late 2012, our power team has made investments in 17 power assets across fuel types totaling more than $2 billion of enterprise value. The North American power generation sector is evolving due to very favorable industry trends. At the same time, we’re seeing extensive deal activity involving single assets and portfolios of power plants. We believe it’s a terrific time to be investing in the North American power space.”
Cogentrix, a Carlyle portfolio company, is a developer, operator and manager of independent power plants in North America. Founded in 1983, Cogentrix has been directly responsible for the development, engineering, construction, operation and management of a portfolio totaling 41 fossil and renewable power facilities with a combined generating capability of over 10,000 gross megawatts.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $203 billion of assets under management across 126 funds and 139 fund of funds vehicles as of June 30, 2014. 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 1,600 people in 40 offices across six continents.