Energy utility company Emera has agreed to sell its three natural gas plants in New England for $590m.
The three facilities will be acquired by Cogentrix, an affiliate of US-based private equity firm Carlyle Group.
The natural gas plants include Bridgeport Energy, Tiverton Power, and Rumford Power, which together have the capacity to generate approximately 1,100MW of energy.
Emera president and CEO Scott Balfour said: “This transaction, part of the three-year funding plan we introduced during our third quarter earnings results, increases Emera’s financing flexibility to capitalise on our regulated growth opportunities today and in the future.
“Our New England facilities delivered solid financial results during the five years of our ownership and distinguished themselves with industry-leading safety and operational performance.
“I want to thank our dedicated teams whose expertise and commitment produced those achievements. The Carlyle Group is highly regarded in the industry and well positioned to lead these facilities to continued success.”
Emera intends to use the proceeds from the sale to reduce its corporate-level debt and support capital investment opportunities within its regulated utility businesses.
Carlyle Group managing director and Carlyle Power Partners head Matt O’Connor said: “Through this acquisition, Carlyle Power Partners will increase its generation capacity in the attractive New England market, making us one of the largest owners of power generation facilities in the region.
“We look forward to leveraging our existing market knowledge to create additional value for Bridgeport Energy, Tiverton Power, and Rumford Power, building on their already strong track records of operational excellence.”
Expected to complete in the first quarter of next year, the transaction requires regulatory approvals of the US Federal Energy Regulatory Commission (FERC), and under the provisions of the Hart-Scott-Rodino Antitrust Act.