Platinum Equity’s $520 Million Acquisition of Hunterstown Power Generation Facility From GenOn Energy


Financing will be led by Morgan Stanley and Latham & Watkins is acting as legal counsel to Platinum Equity on the Hunterstown acquisition. Kirkland & Ellis LLP counseled GenOn Energy Inc.

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.

GenOn operates as a unit of NRG Energy Inc. NRG Energy, Inc. owns and operates a diverse portfolio of power-generating facilities primarily in the United States. The company, led by Mauricio Gutierrez, Kirkland B Andrews and David Callen, in 2017 recorded $11 Billion Revenues.

The Kirkland team included corporate partners Kim Hicks (Picture), Shubi Arora and Andrew Calder and associates Jeannie Poland, Stella Tang, Juan Pablo Lopez and Gordon Cranner.

Involved fees earner: Kim Hicks – Kirkland & Ellis; Andrew Calder – Kirkland & Ellis; Juan Pablo Lopez – Kirkland & Ellis; Shubi Arora – Kirkland & Ellis; Stella Tang – Kirkland & Ellis; Jeannie Poland – Kirkland & Ellis; Gordon Cranner – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: GenOn;

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Author: Ambrogio Visconti