American independent power producer Competitive Power Ventures is being sold by its private equity owners to an Israeli investor.
Global Infrastructure Partners announced purchase and sale agreement with OPC Energy this morning. Under the deal, OPC and its partners will acquire 100 percent of GIP’s stake in CPV.
These assets include operations, development pipeline and asset management. OPC said it plans to invest “significant capital” in CPV to fund future growth.
CPV’s projects, both completed and under development, include combined-cycle, gas-fired power plants and solar capacity in the eastern and Midwest U.S.
“Following consummation of the transaction, we look forward to the opportunities created by our new partnership with OPC, which positions us well for our next phase of growth during a pivotal time as the U.S. transitions toward greener and lower emitting generating resources,” said CPV CEO Gary Lambert. “We are proud of our more than two decades of successful development and operations and we are pleased to find a partner interested in retaining the cohesive management team and continuing to build the platform to fit this emerging marketplace. I am grateful to Global Infrastructure Partners for its confidence in CPV over the past five years, providing not only access to capital but credible execution and operations expertise that helped guide us through a significant growth period.”
Among CPV’s projects include the Three Rivers Energy Center CCGT plant being construction Illinois and the Maple Hill solar farm in Pennsylvania. Work was completed last year on the 1-GW Fairview CCGT power plant (pictured) in Pennsylvania.
“We have been impressed by CPV’s exceptional management team and their ability to drive value through their industry-leading development, operating and asset management capabilities,” said Bill Woodburn, Founding Partner & Operating Partner at GIP. “We congratulate OPC on their acquisition of CPV at this crucial time for energy development in the United States, and we look forward to CPV’s and OPC’s continued success.”
OPC will own 70 percent of the newly formed entity; the remaining 30% will be owned by three Israeli institutional investors. There are no plans to change the existing CPV leadership team.
“OPC has long recognized the potential in the U.S. electricity market,” said Giora Almogi, CEO of OPC. “CPV is one of the leading private development and power generation companies in the United States and will be an excellent partner given their expansive renewable development program, strong industry partnerships and a world class leadership team. We are pleased to welcome CPV to our portfolio of reliable, responsible and cost effective generation services.”
The closing of this transaction and regulatory approval is expected to occur in early 2021.
Morgan Stanley served as financial advisor to GIP, with Latham & Watkins LLP acting as lead transaction counsel. BLK and Macquarie Capital served as financial advisors to OPC, with Skadden Arps Slate Meagher & Flom LLP as lead transaction counsel.