Business
Quantum Capital Group to Acquire Cogentrix from Carlyle for $3 Billion
Cogentrix Platform Consists of 11 Natural Gas-Fired Power Plants, Comprising 5.3 Gigawatts of Efficient and Reliable Capacity Across Key U.S. Markets HOUSTON,
About this update from The Carlyle Group Inc.
[{"type":"text","content":"Cogentrix Platform Consists of 11 Natural Gas-Fired Power Plants, Comprising 5.3 Gigawatts of Efficient and Reliable Capacity Across Key U.S. Markets\nHOUSTON, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Quantum Capital Group and its affiliates (“Quantum”) today announced that it has entered into an agreement to acquire Cogentrix Energy (“Cogentrix” or the “Company”), a premier U.S. independent power producer, from funds managed by Carlyle (NASDAQ: CG) for a total consideration of approximately $3 billion. The Cogentrix platform is comprised of 5.3 gigawatts of efficient and flexible natural gas-fired power plants, located throughout PJM, ERCOT, and ISO-NE, which support the reliability, resiliency, and affordability of the U.S. electricity market. Headquartered in Charlotte, North Carolina, Cogentrix has a multi-decade track record of successfully acquiring, developing, constructing, operating, and optimizing conventional and renewable power generation assets throughout the U.S. Following transaction close, the Company will continue to be led by current CEO John Ragan and the existing Cogentrix management team. “We are at a critical juncture in the evolution of the domestic power market. Electricity demand is rapidly increasing thanks to explosive growth in data centers and AI, the reshoring of manufacturing, and the electrification-of-everything,” said Wil VanLoh, Founder and CEO of Quantum. “This growth is occurring at the same time our grid is becoming more unstable with additions of intermittent renewable power and continued retirements of coal-fired generation. Now more than ever, we need reliable and efficient power infrastructure. This is what the Cogentrix assets provide.” Michael MacDougall, Partner at Quantum, said: “We are thrilled to partner with the Cogentrix team. Having stewarded more than 18 gigawatts of assets over its 40+ year history, the Company is a proven leader in building, managing, and optimizing power generation assets of all technology types. We expect to meaningfully grow the Cogentrix platform, with a focus on gas-fired power generation, renewables, and battery storage. Our goal is to deliver clean, reliable, and affordable power to customers.” Matt O’Connor, a Partner within Carlyle’s Global Infrastructure team, added: “This is a win-win transaction for everyone involved as Cogentrix begins its next chapter ...