Houston-based power company to make $1B acquisition
A Houston-based company expects to charge up its operations with the acquisition of a San Diego-based firm.
Calpine Corp. (NYSE: CPN), a Houston-based wholesale power generation company, plans to purchase Noble Americas Energy Solutions LLC for around $1 billion, according to a release. The deal is expected to close by the end of 2016.
Calpine will pay about $800 million for Singapore-based Noble Group Ltd.’s American energy business, plus more for the repayment of working capital at closing. Calpine estimates the payment for net working capital will be about $100 million at closing, while Noble Group values it around $248 million, according to Bloomberg. The divestment will release $275 million in letters of credit and surety bonds, which will become available to Noble, the Wall Street Journal reports.
“We are excited to be acquiring the best commercial and industrial direct energy sales platform in the U.S.,” Thad Hill, Calpine’s president and CEO, said in the release. “In addition to expanding our retail customer sales channels and product offerings, we will more than double the volume of retail load we are capable of serving across the country from our complementary wholesale power generation fleet.”