UK power company buys four US plants
Published Date:
13 May 2008
UK-BASED electricity firm International Power has agreed to buy four US power generation plants for $856.4 million (£436.8m) to expand its presence in the country.
International Power said it was buying the plants in the US power regions of Pennsylvania, New Jersey and Maryland (PJM) and Midwest Independent System Operator (MISO) from Tenaska Power Fund and an affiliate of Warburg Pincus. Together the four plants have capacity to generate 1,857 megawatts of power.
The firm said the deal would immediately boost its free cash flow and was likely to be neutral to its earnings in the first few years before generating strong growth thereafter. International Power's US operations currently focus around Texas and New England.
In a research note, analysts at investment bank UBS said: "Overall we believe that the deal is at a good valuation and fits well with the current portfolio in the US."
The full article contains 157 words and appears in The Scotsman newspaper.
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Last Updated:
12 May 2008 8:59 PM
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Source:
The Scotsman
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Location:
Edinburgh
