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TransAlta to Acquire Heartland Generation from Energy Capital Partners for $658 million - Expands Capabilities to Meet Demands of Energy Transition
TransAlta to Acquire Heartland Generation from Energy Capital Partners for $658 million - Expands...
About this update from Transalta Corporation
[{"type":"text","content":"\n \n \n \n TransAlta to Acquire Heartland Generation from Energy Capital Partners for $658 million - Expands Capabilities to Meet Demands of Energy Transition\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n CALGARY, AB\n \n \n ,\n \n \n Nov. 2, 2023\n \n \n /CNW/ -\n \n \n \n Highlights\n \n \n \n \n Highly accretive to free cash flow and cash yield upon closing with approximately 55% of revenues contracted with a weighted-average remaining life of 16 years\n \n \n \n \n Transaction valued at approximately\n \n $658 million\n \n , inclusive of the assumption of\n \n $268 million\n \n of low-cost debt, with an expected EBITDA multiple of approximately 5.5x\n \n \n \n \n Corporate pre-tax synergies expected to exceed\n \n $20 million\n \n annually\n \n \n \n \n Adds 1,844 MW (net interest) of complementary flexible capacity including contracted cogeneration, peaking generation, transmission capacity and development opportunities in hydrogen, which will be needed to support the energy transition and reliability in the\n \n Alberta\n \n electricity market\n \n \n \n \n Augments and further diversifies TransAlta's portfolio in\n \n Alberta's\n \n energy-only market\n \n \n \n \n Enhances TransAlta's competitive positioning in the highly dynamic and shifting electricity landscape in\n \n Alberta\n \n \n \n \n TransAlta Corporation (TSX: TA) (NYSE: TAC) (\"TransAlta\" or \"the Company\") announced that it has entered into a definitive share purchase agreement (the \"Agreement\") with an affiliate of Energy Capital Partners (\"ECP\"), the parent of Heartland Generation Ltd. and Alberta Power (2000) Ltd. (collectively, \"Heartland\"), pursuant to which TransAlta will acquire Heartland and its entire business operations in\n \n Alberta\n \n and British Columbia.  Heartland owns and operates generation assets consisting of 507 megawatts (MW) of cogeneration, 387 MW of contracted and merchant peaking generation, 950 MW of gas-fired thermal generation, transmission capacity and a development pipeli...