Calpine Corp. (NYSE: CPN) has completed a deal to divest more than $1.57 billion-worth of power plants across the Southeastern U.S., the company said July 6.
New York-based LS Power was the buyer. With the purchase, the company will gain natural gas-fired plants in Oklahoma, Louisiana, Florida and South Carolina, and two plants in Alabama, representing 3,498 megawatts of combined energy.
“The quality of the assets, the outstanding operational track record of the facilities and the skilled plant personnel were all important factors in our decision,” LS Power CEO Paul Segal said in a statement. “We are committed to making this a smooth transition for the dedicated professionals operating these facilities and their communities.
The sale was first announced while Jack Fusco was still CEO of Calpine. Less than a month later, Fusco made the switch to executive chairman as planned, and Thad Hill was his replacement along with several other executive appointments.
“By divesting these non-core assets, we have captured significant value for our shareholders, freeing capital for redeployment into higher return opportunities,” Hill said in the statement.
Capline expects to net $750 million in the third quarter of 2014 as a result of the deal.
Calpine was the 29th largest public company in Houston in 2012 based on revenue of $5.48 billion, a ccording to Houston Business Journal research.
Article and Image sourced from bizjournals.com July 8th, 2014.