LOS ANGELES, Feb. 27, 2018 (GLOBE NEWSWIRE) -- Platinum Equity announced today that it has signed a definitive
agreement to acquire GenOn’s Hunterstown power generation facility and related assets in a transaction valued at
approximately $520 million. GenOn, a unit of NRG Energy Inc. (NYSE:NRG), filed for bankruptcy protection in June
2017.
The acquisition is subject to regulatory approval and is expected to close in the second quarter of 2018.
Located in Gettysburg, Pennsylvania, the Hunterstown facility is a combined-cycle gas turbine generating power
plant that provides 810 MW to the PJM (Met-Ed) 500kV grid, with enough to supply more than 648,000 homes.
The investment offers a compelling mix of elements that correspond with Platinum Equity’s M&A&O®
strategy, which emphasizes entry price, downside protection and operational excellence to create value.
“The power generation industry continues to experience some dislocation, which is fueling corporate carve out
activity,” said Platinum Equity Partner Louis Samson. “Hunterstown is well maintained and features industry-leading technology. It
operates in PJM, the largest electricity market in the United States, and generates strong recurring revenue streams.”
Mr. Samson said Platinum Equity is actively looking for add-on opportunities
for the Hunterstown asset as well as additional platform investments in the power generation market.
“We believe that the dynamics prevailing in this sector will continue to create attractive opportunities for us
to acquire assets and create value,” added Mr. Samson.
AOS Energy Partners provided consulting services to Platinum Equity in connection with
the Hunterstown acquisition and will co-invest in the transaction. AOS is expected to remain active with the investment
going forward.
Financing will be led by Morgan Stanley and Latham & Watkins is acting as legal counsel to
Platinum Equity on the Hunterstown acquisition.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a
portfolio of more than 30 operating companies that serve customers around the world. The firm is
currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund. Platinum Equity
specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating
companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment
rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years
Platinum Equity has completed more than 200 acquisitions.
Contacts: Dan Whelan, Platinum Equity (310) 282-9202 dwhelan@platinumequity.com
