PE-backed Milestone buys Maxim Power (USA) for about $106 mln

Milepost Power Holdings, which is backed by Hull Street Energy LLC, has acquired Maxim Power (USA) Inc from Maxim Power Corp for about $106 million. The Maxim Power (USA)’s assets include five electric generation facilities in the U.S. Manatt, Phelps & Phillips and Greenberg Traurig provided legal counsel to Hull Street Energy on the transaction while Eaton Partners is currently serving as placement agent for the firm.

PRESS RELEASE

BETHESDA, Md., April 13, 2017 /PRNewswire/ — Hull Street Energy, LLC (“Hull Street Energy”) announced that it has completed the acquisition of 100% of the ownership interest in Maxim Power (USA) Inc. from Maxim Power Corp. (TSX: MXG). The acquisition was made by a recently-formed Hull Street Energy affiliate, Milepost Power Holdings (“Milepost”), at a purchase price of approximately $106 million. The assets acquired by Milepost consist of Maxim Power (USA)’s five natural gas-fired electric generation facilities in the United States.

Hull Street Energy, a private equity firm that invests in power generation assets and related businesses, established Milepost as part of its strategy to build and grow a significant presence in the North American middle market power sector. As a result of this transaction, Milepost now owns 446 MW of flexible, dual fueled power generation assets in the Northeast, Mid-Atlantic and Western United States.

“The formation of Milepost and its acquisition of the Maxim Power (USA) assets reflect our strategic focus on the investment opportunity created by the ongoing transition to more sustainable sources of electric power,” said Sarah Wright, Managing Partner of Hull Street Energy. “As the North American power market becomes increasingly fragmented and decentralized, we are actively pursuing opportunities to acquire middle market power businesses and to enhance their value through asset optimization, customer base expansion and improved management. We believe the industry expertise, analytical capabilities and operational strength of our team will enable Hull Street Energy and Milepost to identify middle market assets and businesses that are positioned to thrive as the power generation sector continues its evolution.”

“Due to its advantageous access to fuel and its location, the Milepost asset fleet provides critical reliability service to the power grid in New England. The fleet should be well-positioned as the New England region moves to integrate more intermittent renewable resources such as solar, wind and hydro into its supply mix,” noted Mark Orman, a Partner at Hull Street Energy who is serving as Interim CEO of Milepost Power.

Manatt, Phelps & Phillips and Greenberg Traurig acted as legal counsel to Hull Street Energy on the transaction, and Eaton Partners is currently serving as placement agent for the firm.

About Hull Street Energy, LLC
Hull Street Energy is a private equity firm that acquires, optimizes and grows power businesses through the application of industry-leading risk management, efficiency enhancements and commodity contract structuring. Headquartered in Bethesda, Maryland, the team leverages its decades of experience and unique knowledge of North American electricity infrastructure, including fuel inputs, generation assets, transmission and distribution systems, and electricity demand-side businesses to build value for our investors and stakeholders.

Hull Street Energy was established by a team with extensive, long-standing expertise in the power industry. Its principals have worked at leading energy-focused institutions such as Goldman Sachs, and Constellation Energy Group. They bring to the firm’s investments a unique combination of deep technical and commercial knowledge of the electricity industry, and top-tier financial investment expertise.

For further information about Hull Street Energy please see http://www.hullstreetenergy.com.