Independent power producer Talen Energy has agreed to acquire two combined-cycle gas-fired plants (CCGTs) situated within the PJM [Pennsylvania-New Jersey-Maryland] power market for a net acquisition price of $3.5bn.
The two plants are Caithness Energy’s Moxie Freedom Energy Centre in Pennsylvania and BlackRock’s Guernsey Power Station in Ohio.
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Talen will also acquire equity interests in Guernsey from Global Infrastructure Partners’ funds managed under BlackRock.
The transactions have a gross value of $3.8bn.
The net acquisition price before tax benefits adjustments reflects an attractive 6.7 times 2026 enterprise value to earnings before interest, taxation, depreciation and amortisation multiple [a financial metric used to assess a company’s valuation, comparing its total value (including debt) to its operating profitability] for the power plants.
The deal is projected to enhance Talen’s free cash flow per share by more than 40% in 2026 and exceed 50% through to 2029.
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By GlobalDataTalen Energy will issue $3.8bn in new debt, comprising both secured and unsecured notes, to finance the acquisitions and refinance existing debts of the acquired entities.
The acquisitions will be completed by the fourth quarter of 2025, pending regulatory approvals, including those from the Federal Energy Regulatory Commission and compliance with the Hart-Scott-Rodino Act.
Talen Energy president and CEO Mac McFarland stated: “This acquisition enhances Talen’s fleet by selectively adding modern, highly efficient baseload H-class CCGTs in Talen’s key markets, where we are an innovator in data centre contracting.
“The transaction is immediately and highly accretive, maintains our balance sheet discipline and adds more than the equivalent of another Susquehanna nuclear plant to our platform, further enabling large load service.”
The acquisitions expand Talen’s fleet and increase its annual generation capacity from 40 terawatt hours (TWh) to 60TWh.
The deals also strengthen Talen’s capacity to provide reliable and scaleable low-carbon energy solutions for data centres and large commercial clients.
The company is now better positioned to cater to the continuous power demands of rapidly growing sectors.
Caithness Energy Jr chairman and CEO James D Bishop stated: “Caithness has built an extensive portfolio of leading-edge power generation facilities to support our valued customers.
“We are proud of what we have accomplished, and this sale to Talen positions the assets for continued success under a strong and successful management team.”
RBC Capital Markets and Citi provided financial advisory services for Talen, with Kirkland & Ellis and White & Case as legal advisors.
Lazard served as financial advisor for Caithness, with Paul Hastings serving as legal counsel.
Morgan Stanley served as financial advisor for Global Infrastructure Partners, with Simpson Thacher & Bartlett providing legal advice.
In June 2025, Talen Energy partnered Amazon in a new power purchase agreement to provide carbon-free electricity from Talen’s Susquehanna nuclear power plant in Pennsylvania to Amazon Web Services (AWS) data centres.
