US-based power generation company VoltaGrid has agreed to secure $1bn in strategic equity from funds managed by Blackstone Tactical Opportunities and Halliburton Company to fund growth.
The funding package includes a $775m primary capital raise and a $225m secondary purchase from existing stakeholders.
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VoltaGrid plans to use these funds to support the expansion of its behind-the-meter power generation solutions targeting data centres, microgrid operations and various industrial applications.
The company has also entered into a definitive agreement to acquire Propell Energy Technology and its affiliates, which supplies VoltaGrid with manufacturing and technology development services.
The combination aims to reinforce VoltaGrid’s position as an end-to-end power generation platform.
VoltaGrid expects the acquisition to provide supply chain advantages and reduce operational risks, particularly in fulfilling its 7.5GW order book through 2030.
Propell, established in 1978, employs around 1,000 people in the US and Canada. Its team supports a range of services including research and development, manufacturing, integration and after-sales support.
VoltaGrid intends to incorporate Propell’s workforce and manufacturing expertise, which covers reciprocating engines and turbine technologies, to enhance its service offering.
As part of the transaction, VoltaGrid has outlined immediate investments aimed at expanding Propell’s existing facilities in Granbury, Texas. This expansion will include the construction of two next-generation automated plants.
The increased capacity is expected to reach approximately 300MW per month, utilising both reciprocating engines and turbines.
Both the equity investment and the acquisition remain subject to customary closing conditions, with completion anticipated by mid-2026.
VoltaGrid founder and CEO Nathan Ough said: “Blackstone’s scale and sector expertise make them an ideal partner as we accelerate the deployment of our behind-the-meter power solutions to meet unprecedented customer demand.
“The acquisition of Propell adds proven engineering and integration capabilities that will further extend our technology and operational leadership as we continue to scale.”
Goldman Sachs & Co. advised VoltaGrid on financial matters, while Kirkland & Ellis and Sidley Austin provided legal counsel.
Morgan Stanley served as lead financial advisor to Blackstone, with additional advice from Lazard, and Simpson Thacher & Bartlett acted as Blackstone’s legal counsel.
Deloitte Corporate Finance advised Propell on financial matters, with Mogan Daniels Slager as legal advisor.
In February, VoltaGrid selected the INNIO Group to provide 1.5GW of power generation equipment for behind-the-meter use.
