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Platinum Equity to buy 810MW Hunterstown gas-fired plant from GenOn

EBR Staff Writer Published 28 February 2018

Global investment firm Platinum Equity has agreed to buy the 810MW Hunterstown power generation facility and associated assets in the US state of Pennsylvania from GenOn for about $520m.

The Hunterstown facility is a combined-cycle gas-fired power plant located in Gettysburg, which is connected to the PJM (Met-Ed) 500kV grid. The power supplied from the Hunterstown gas-fired plant meets the power consumption needs of more than 648,000 homes.

Platinum Equity said that the acquisition provides an attractive mix of elements in line with its M&A&O strategy, which integrates traditional M&A with operational expertise.

Platinum Equity partner Louis Samson said: “The power generation industry continues to experience some dislocation, which is fueling corporate carve out activity.

“Hunterstown is well maintained and features industry-leading technology. It operates in PJM, the largest electricity market in the United States, and generates strong recurring revenue streams.”

Samson also revealed Platinum Equity’s plans of actively pursuing add-on opportunities for the Hunterstown power facility and also additional platform investments in the power generation sector.

He added: “We believe that the dynamics prevailing in this sector will continue to create attractive opportunities for us to acquire assets and create value.”

Platinum Equity’s transaction with GenOn is likely to be completed in the second quarter of this year, provided it gets regulatory approval.

GenOn, the seller of the Hunterstown gas-fired plant is a unit of NRG Energy, had filed for bankruptcy in June 2017.

The company was founded in 2010 through the merger of Mirant and RRI Energy, and about two years later, it was acquired by NRG Energy for $1.7bn.

GenOn operates 32 power generation facilities in eight US states, reported Reuters. Located, primarily in the Mid-Atlantic, the GenOn power plants have a combined capacity of nearly 15.3GW with most of the power produced by the company being natural gas-based.