|
|
|
|
|
Retail Supplier Parent To Acquire Cogentrix, Including 5,500 MW Portfolio In PJM, ERCOT, ISO-NE
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Vistra Corp. today announced that it has executed definitive agreements to acquire Cogentrix Energy, consisting of 10 "modern" natural gas generation facilities totaling approximately 5,500 MW of capacity.
Cogentrix is indirectly owned by funds managed by Quantum Capital Group.
The acquisition includes three combined cycle gas turbine facilities and two combustion turbine facilities located across PJM, four combined cycle gas turbine facilities in ISO New England, and one cogeneration facility in ERCOT.
Vistra will acquire these assets at a net purchase price of approximately $4.0 billion, which is comprised of the payment of approximately $2.3 billion of cash consideration and approximately $0.9 billion of Vistra stock consideration (5 million shares of common stock at a mutually agreed-upon value of $185 per share) to be issued to Quantum, and the assumption of approximately $1.5 billion of outstanding indebtedness at Cogentrix, less approximately $0.7 billion of net present value of expected tax benefits generated directly as a result of the transaction.
The consideration payable is also subject to certain customary net working capital, cash, and indebtedness adjustments.
The approximately $4.0 billion net purchase price implies a multiple of approximately 7.25x the 2027 expected Adjusted EBITDA contribution and approximately $730/kW for the portfolio.
"The Vistra team is excited to announce the acquisition of the Cogentrix portfolio, marking the second opportunistic expansion of our generation footprint over the past year to support our ability to serve growing customer demand in our key markets," said Vistra President and CEO Jim Burke.
Burke continued, "Vistra continues to look for opportunities that allow us to meet the growing demand of customers and meet our disciplined investment thresholds."
The transaction is described as including, "substantially all of the Cogentrix portfolio".
The portfolio to be acquired includes:
Note: Vistra is acquiring 100% ownership in all the above plants, including the 25% interest in the Patriot and Hamilton-Liberty plants not currently owned by Cogentrix.
The portfolio has an average heat rate of approximately 7,800 Btu / kWh and features the Patriot and Hamilton-Liberty plants, which are 2016 COD facilities with sub 7,000 Btu / kWh heat rates.
Vistra said that the transaction expands and diversifies its integrated fleet in key regions
Combined with its current fleet, Vistra's generation portfolio will consist of approximately 50,000 MW of capacity across the US.
Among other strategic rationale, Vistra stated that the transaction: "Fully Aligns with Vistra's Disciplined Approach to Capital Allocation: Acquisition expected to deliver immediate benefits to Vistra shareholders, including Ongoing Operations AFCFbG per share accretion in the mid-single digits in 2027 and high single-digit accretion on average over 2027-2029, driven by an attractive cash flow generation profile of the Cogentrix portfolio and expected tax benefits generated directly as a result of the transaction. Vistra expects the transaction to exceed its mid-teens levered return target."
The transaction is subject to certain regulatory approvals, including by the Federal Energy Regulatory Commission, the Department of Justice under the Hart-Scott-Rodino Act, and certain state regulatory approvals, and is expected to close in mid-to-late-2026.
ADVERTISEMENT Copyright 2026 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
January 5, 2026
Email This Story
Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW -- Account Executive (Commercial Retail Energy)
|
|
|
|
|