ArcLight Capital’s $1.92 Billion Acquisition of PSEG’s Fossil Generating Portfolio

Latham & Watkins represented ArcLight, while Wachtell, Lipton, Rosen & Katz represented PSEG in the transaction.

Public Service Enterprise Group Inc. (NYSE: PEG) has entered into an agreement to sell its 6,750-megawatt fossil generating portfolio to newly formed subsidiaries of ArcLight Energy Partners Fund VII, L.P., a fund controlled by ArcLight Capital Partners, LLC for aggregate consideration of approximately $1.92 billion, subject to customary adjustments. 

Public Service Enterprise Group is the holding company for a regulated utility (PSE&G) and an energy investment firm (PSEG Enterprise). PSE&G provides regulated gas and electricity delivery services in New Jersey to a combined 4 million customers. Energy Holdings invests in energy-related assets worldwide. PSEG also operates the Long Island Power Authority system.

Founded in 2001 and based in Boston, ArcLight Capital Partners helped pioneer an asset-based private equity approach to investing in the dynamic energy sector.

Latham & Watkins LLP represented ArcLight in the transaction with a corporate deal team led by New York partners David Allinson (Picture) and Jane Greyf, with associate Molly Ryan. New York partners Chirag Dedania and Warren Lilien advised on project development and finance matters.

Wachtell Lipton’s team was led by corporate partners Andrew R. Brownstein and Benjamin M. Roth and included Steven R. Green, Associate, Hannah Clark, Associate, Kelsey V. Dennison, Associate, Sarah T. Fellay, Summer Associate (Corporate), Ilene Knable Gotts, Partner, Joseph D. Larson, Of Counsel, Patrick R. Ward, Associate (Antitrust), Erica E. Bonnett, Partner, Amanda K. Toy, Associate (Executive Compensation and Benefits), Gregory E. Pessin, Partner, Sumita Ahuja, Counsel, Adriane V. Sanchez, Associate (Finance), Mark A. Koenig, Counsel (Real Estate M&A), Deborah L. Paul, Partner, and Liam N. Murphy, Associate (Tax).

Involved fees earner: David Allinson – Latham & Watkins; Chirag Dedania – Latham & Watkins; Jane Greyf – Latham & Watkins; Warren Lilien – Latham & Watkins; Molly Ryan – Latham & Watkins; Adriane Sanchez – Skadden Arps Slate Meager & Flom; Sumita Ahuja – Wachtell, Lipton, Rosen & Katz; Erica Bonnett – Wachtell, Lipton, Rosen & Katz; Andrew Brownstein – Wachtell, Lipton, Rosen & Katz; Hannah Clark – Wachtell, Lipton, Rosen & Katz; Kelsey Dennison – Wachtell, Lipton, Rosen & Katz; Steven Green – Wachtell, Lipton, Rosen & Katz; Ilene Knable Gotts – Wachtell, Lipton, Rosen & Katz; Mark Koenig – Wachtell, Lipton, Rosen & Katz; Joseph Larson – Wachtell, Lipton, Rosen & Katz; Liam Murphy – Wachtell, Lipton, Rosen & Katz; Deborah Paul – Wachtell, Lipton, Rosen & Katz; Gregory Pessin – Wachtell, Lipton, Rosen & Katz; Benjamin Roth – Wachtell, Lipton, Rosen & Katz; Amanda Toy – Wachtell, Lipton, Rosen & Katz; Patrick Ward – Wachtell, Lipton, Rosen & Katz;

Law Firms: Latham & Watkins; Skadden Arps Slate Meager & Flom; Wachtell, Lipton, Rosen & Katz;

Clients: ArcLight Capital Partners, LLC; Public Service Enterprise Group, Inc.;

Author: Martina Bellini