Dynegy doubles energy capacity with $6.25 billion in acquisitions
Dynegy (DYN) is doubling down its energy capacity with two new deals.
The energy provider announced Friday that it’s acquiring gas and coal generation assets from Duke Energy and Energy Capital Partners in transactions worth a total of $6.25 billion. The deals, according to a company press release, will double the company’s energy capacity to about 26,000 megawatts for the U.S.
Additionally, the acquisitions will ensure that Dynegy can service new clients in Michigan, Ohio, Pennsylvania and Illinois.
The company is paying $2.8 billion for Duke Energy’s commercial energy generation business as well as $3.45 billion for its deal with Energy Capital Partners.
“The two acquisitions announced today are both exceptionally high quality portfolios that have been well managed and run by Duke and ECP employees,” said Dynegy CEO Robert Flexon in a statement. He also stated that the deals will add “considerable scale” to the New England markets.
“The Duke and ECP employees are committed, hard-working men and women and we look forward to engaging their expertise and talent in the combined business,” added Flexon.
The company believes that the deals will close in 2015 during the year’s first quarter.
Dynegy’s advisers throughout the process included Credit Suisse, Lazard (LAZ), Morgan Stanley (MS) and Goldman Sachs (GS).