New York, NY – Global Infrastructure Partners (GIP) announced today that it has entered into a Purchase and Sale Agreement with an affiliate of OPC Energy (OPC), an Israeli company based in Tel Aviv. Under the agreement, OPC and its partners will acquire 100% of GIP’s interest in Competitive Power Ventures (CPV), including all its operating assets, development pipeline and asset management business. OPC plans to invest significant capital in CPV to fund its future growth.
Focused on modernizing the U.S. power grid, CPV has developed and constructed some of the world’s most efficient gas-fired power generation plants. CPV’s projects have made significant contributions to the economic development of its local communities while also greatly enhancing grid reliability and reducing carbon emissions by more than 17 million tons. CPV’s robust natural gas and renewable development pipelines will help drive the transformation to a more environmentally responsible, economic, and reliable U.S. power system.
“Following consummation of the transaction, we look forward to the opportunities created by our new partnership with OPC, which positions us well for our next phase of growth during a pivotal time as the U.S. transitions toward greener and lower emitting generating resources,” said CPV CEO Gary Lambert. “We are proud of our more than two decades of successful development and operations and we are pleased to find a partner interested in retaining the cohesive management team and continuing to build the platform to fit this emerging marketplace. I am grateful to Global Infrastructure Partners for its confidence in CPV over the past five years, providing not only access to capital but credible execution and operations expertise that helped guide us through a significant growth period.”
“We have been impressed by CPV’s exceptional management team and their ability to drive value through their industry-leading development, operating and asset management capabilities,” said Bill Woodburn, Founding Partner & Operating Partner at GIP. “We congratulate OPC on their acquisition of CPV at this crucial time for energy development in the United States, and we look forward to CPV’s and OPC’s continued success.”
OPC will own 70% of the newly formed entity; the remaining 30% will be owned by three Israeli institutional investors. OPC plans to continue to grow CPV, with a focus on renewable and highly efficient, combined-cycle gas turbine projects. There are no plans to change the existing CPV leadership team.
As the first privately held electricity company in Israel, OPC operates in the field of power generation, including the development, construction and operation of power plants, and supplies energy to private customers and the Israel Electricity Corporation. Today, OPC generates around 5% of the electricity consumption in Israel.
"OPC has long recognized the potential in the U.S. electricity market,” said Giora Almogi, CEO of OPC. “CPV is one of the leading private development and power generation companies in the United States and will be an excellent partner given their expansive renewable development program, strong industry partnerships and a world class leadership team. We are pleased to welcome CPV to our portfolio of reliable, responsible and cost effective generation services.”
The closing of this transaction and regulatory approval is expected to occur in early 2021.
Morgan Stanley served as financial advisor to GIP, with Latham & Watkins LLP acting as lead transaction counsel. BLK and Macquarie Capital served as financial advisors to OPC, with Skadden Arps Slate Meagher & Flom LLP as lead transaction counsel.
Competitive Power Ventures (CPV) is uniquely positioned to leverage global technology and financial partnerships to help modernize America’s power generation. Together with our investors, partners, host communities and other key stakeholders, we are driven to improve our energy infrastructure by developing and operating power generation facilities using cutting edge, domestically available natural gas and renewable power technologies. Headquartered in Silver Spring, MD, with an office in Braintree, MA, the company has ownership interest in 5.3 GW of clean generation across the United States. The company’s Asset Management division currently manages more than 10.6 GW of fossil and renewable generating facilities in nine states for 13 different owner groups. Our focus on Environmental, Social and Governance (ESG) and sustained track record of success have enabled us to grow into the number one thermal developer and one of North America’s premier energy companies. For more information: www.cpv.com and follow CPV on Twitter and LinkedIn.
Global Infrastructure Partners (GIP) is an independent infrastructure fund manager that makes equity and debt investments in infrastructure and businesses. GIP targets investments in the energy, transport and water/waste setors in both OECD and select emerging market countries. GIP's 40 portfolio companies employ approximately 58,000 people in over 50 countries. GIP's teams are located in ten offices: London, New York, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. For more information, visit www.global-infra.com.
About OPC Energy LTD
OPC Energy is the first private electricity company in Israel. The Company was incorporated in 2010 and is active in the field of power generation and supply, including development, construction, and operation of power plants, as well as power generation and supply to private customers and to Israel Electricity Corporation (IEC). The Company generated about 5% of the electricity consumption in Israel in 2018.
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