Lakeside Energy LLC, a Chicago-based energy company backed by American Securities, has acquired a 150 MW natural gas-fired power plant in Hazleton, Pa. from an affiliate of Williams (NYSE: WMB). No financial terms were disclosed for the deal, which included new equity provided by American Capital.
Lakeside Energy LLC (Lakeside), a Chicago-based energy company, today announced the completion of the acquisition of a 150 MW natural gas-fired power plant in Hazleton, Pennsylvania (Hazleton) from an affiliate of Williams (NYSE: WMB). The acquisition was financed using equity provided by American Securities.
Hazleton currently serves the Pennsylvania-Jersey-Maryland (PJM) regional transmission organization and is an important facility in the transmission-constrained Eastern zone. As a member of PJM, Hazleton will commit its capacity to PJM via the Reliability Pricing Model (RPM) process. PJM's RPM process provides secure, mid-term predictable capacity pricing.
Simultaneous with the closing, Lakeside executed an Energy Services Agreement (ESA) with Eagle Energy Partners, LLC (Eagle), a wholly-owned subsidiary of Lehman Brothers. Eagle will be the energy manager for Hazleton during the term of the ESA, and as such, will assist Lakeside with the scheduling of power and gas. Lakeside will operate the facility.
Lakeside intends to complete additional strategic acquisitions in the power generation sector as it strives to build a portfolio with geographic and fuel source diversity. Focused on long-term contracted assets in key geographies, Lakeside's power generation business will target primarily natural gas, coal, biomass and renewable fuel opportunities.
“We are very pleased with this power generation acquisition,“ said Bill Johnson, CEO of Lakeside. “We look forward to building a substantial enterprise in power generation with Hazleton as a key component.“
Jim Kueser, Lakeside Energy's Senior Vice President added, “We are delighted that the acquisition of the Hazleton Facility allows us to capitalize on our operating expertise as we grow our power generation business.“
Lakeside Energy LLC
Lakeside is an acquisition-focused energy company with committed equity from American Securities, a New York-based private equity firm. Headquartered in Chicago, Lakeside targets power generation and related renewable energy businesses in North America requiring equity investments of $25 million to $200 million. Lakeside looks for companies with sustainable market positions, predictable cash flows, growth opportunities and reasonable risk management of fuel cost. Its business model is to create additional value in companies and assets through the implementation of operational and commercial improvements and support of the associated management teams. More information on Lakeside Energy LLC can be found at www.lakesideenergy.com.
American Securities American Securities is a New York-based private equity firm that invests in market-leading companies in North America with annual revenues generally ranging between $100 million and $500 million. Investments are funded from $4 billion of committed capital that American Securities manages on a discretionary basis for its investors. The firm traces its roots to the family office founded in 1947 by William Rosenwald to invest and manage his share of his family's Sears, Roebuck & Co. fortune. American Securities has offices in New York and Shanghai. More information on American Securities can be found at www.american-securities.com