Gas

5.3 GW gas generation portfolio to change hands

The portfolio includes 11 natural gas-fired power plants located throughout PJM, ERCOT and ISO-NE.
5.3 GW gas generation portfolio to change hands

Quantum Capital Group announced it has entered into an agreement to acquire power producer Cogentrix Energy from Carlyle for a total of approximately $3 billion.

The Cogentrix fleet includes 11 natural gas-fired power plants totaling 5.3 GW located throughout PJM, ERCOT and ISO-NE.

Cogentrix is headquartered in Charlotte, North Carolina and has multiple decades of experience 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.

On the 5+ GW buy, Quantum cited rapidly increasing electricity demand due to the growth of data centers and AI, the reshoring of manufacturing and electrification, as well as the retirements of fossil-fired generation.

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.

Guggenheim served as Quantum’s financial advisor while King & Spalding and Vinson & Elkins provided legal advice to Quantum. Lazard served as Carlyle’s financial advisor and Latham & Watkins as legal advisor.