Quantum Capital Acquires Cogentrix for $3 Billion
Quantum Capital Group along with its affiliates on Monday said that it has entered into an agreement to acquire Cogentrix Energy, a premier US independent power producer, from funds managed by Carlyle for consideration of approximately $3 billion.
The transaction is subject to customary regulatory approvals and is expected to close between the fourth quarter of 2024 and the first quarter of 2025.
The Cogentrix platform is comprised of 5.3 GW 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 US electricity market.
Headquartered in Charlotte, North Carolina, Cogentrix Energy has a multi-decade track record of successfully acquiring, developing, constructing, operating, and optimising conventional and renewable power generation assets throughout the US.
Following transaction close, the Company will continue to be led by current CEO John Ragan and the existing Cogentrix management team.
Quantum’s Founder and CEO Wil VanLoh said that Quantum is at a critical juncture in the evolution of the domestic power market as electricity demand has been rapidly increasing thanks to explosive growth in data centres and AI, the reshoring of manufacturing, and the electrification-of-everything.
“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, VanLoh added.
Michael MacDougall, Partner at Quantum, said that having stewarded more than 18 GW of assets over its 40+ year history, the company is a proven leader in building, managing, and optimising 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,” MaDougall said.
Deal Shows Carlyle’s Expertise
Pooja Goyal, CIO of Global Infrastructure at Carlyle, said that they were happy to have supported Cogentrix’s efforts to establish decarbonisation objectives for its fleet of natural gas-fired power generation assets while continuing to support grid reliability, a critical balance required to effectuate the energy transition.
“This successful transaction is a testament to the deep sector expertise of our energy and infrastructure platform at Carlyle. We look forward to continuing our investment activities in this rapidly growing area, including partnering with our management teams on growth opportunities and deploying capital in new investments,” she added.
Cogentrix Energy’s CEO Johan Ragan said that the partnership with Carlyle has provided their company with the tools and capabilities to capture a growing opportunity set within the US power market.
“As we look to the future, we are confident Quantum’s deep knowledge of the energy markets, successful track record of business building, and risk management capabilities will drive significant long-term value for our customers, employees, investors, and other stakeholders,” Ragan added.
