M&A Deal Summary

The Blackstone Group and ArcLight Capital Partners Acquire American Electric Power - Four Competitive Power Plants

On September 14, 2016, private equity firm The Blackstone Group and infrastructure investor ArcLight Capital Partners acquired renewable energy company American Electric Power - Four Competitive Power Plants from AEP for 2.2B USD

Acquisition Highlights
  • This is The Blackstone Group’s 2nd and ArcLight Capital Partners’ 8th transaction in the Renewable Energy sector.
  • This is The Blackstone Group’s 56th and ArcLight Capital Partners’ largest (disclosed) transaction.
  • This is The Blackstone Group’s 132nd and ArcLight Capital Partners’ 75th transaction in the United States.

M&A Deal Summary

Date 2016-09-14
Target American Electric Power - Four Competitive Power Plants
Sector Renewable Energy
Buyer(s) The Blackstone Group
ArcLight Capital Partners
Sellers(s) AEP
Deal Type Divestiture
Deal Value 2.2B USD
Advisor(s) Goldman Sachs
Citigroup Investment Banking (Financial)
Simpson Thacher & Bartlett (Legal)

Target

American Electric Power - Four Competitive Power Plants

United States
American Electric Power - Four Competitive Power Plants comprises four power plants totaling approximately 5,200 megawatts (MW). Power plants are Lawrenceburg Generating Station, 1,186 MW natural gas, Lawrenceburg, Indiana, Waterford Energy Center, 840 MW natural gas, Waterford, Ohio Darby Generating Station, 507 MW natural gas, Mount Sterling, Ohio and Gen. James M. Gavin Plant, 2,665 MW coal, Cheshire, Ohio.

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Buyer(S) 2

Buyer

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 131.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York City.


DEAL STATS #
Overall 210 of 336
Sector (Renewable Energy) 2 of 4
Type (Divestiture) 20 of 33
Country (United States) 132 of 211
Year (2016) 7 of 10
Size (of disclosed) 56 of 172
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-08-19 Blue Yonder

Scottsdale, Arizona, United States

Blue Yonder is end-to-end, digital fulfillment platform provider in artificial intelligence and machine learning (AI/ML) driven supply chain and retail solutions for 4,000 of the world’s leading retail, manufacturing and logistics companies. Blue Yonder enables an Autonomous Supply ChainTM by connecting its cognitive SaaS solutions from end-to-end — across planning, execution and delivery — with a broad partner ecosystem, empowering customers to better predict and shape demand, transform their product delivery and deliver outstanding customer experiences. Blue Yonder’s world-class client brands include 75 of the top 100 retailers, 77 of the top 100 consumer goods companies, and 8 of the top 10 global 3PLs. Blue Yonder was founded in 1985 and is based in Scottsdale, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-10-11 Pactera Technology

Beijing, China

Pactera Technology is a global consulting and technology services provider headquartered in China. Pactera provides world-class business / IT consulting, solutions, and outsourcing services to a wide range of leading multinational firms through a globally integrated network of onsite and offsite delivery locations in China, the United States, Europe, Australia, Japan, Singapore and Malaysia. Pactera's comprehensive services include business and technology advisory, enterprise application services, business intelligence, application development & maintenance, mobility, cloud computing, infrastructure management, software product engineering & globalization, and business process outsourcing.

Sell $930M
Buyer

ArcLight Capital Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Infrastructure
Founded 2001
PE ASSETS 25.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

ArcLight Capital Partners is private equity firm that invests in energy assets and businesses. Specific areas of interest include power generation; oil, natural gas, coal extraction and production; midstream gathering, processing, storage and transportation of oil, natural gas, coal; energy transportation; and energy distribution companies. ArcLight's geographic coverage includes opportunities across North America, Western Europe, and Australia/New Zealand. ArcLight was formed in 2001 and has offices in Boston and Luxembourg.


DEAL STATS #
Overall 88 of 93
Sector (Renewable Energy) 8 of 9
Type (Divestiture) 4 of 6
Country (United States) 75 of 80
Year (2016) 4 of 4
Size (of disclosed) 1 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-25 LOGOS Resources II

Farmington, New Mexico, United States

LOGOS Resources II is a developer of oil and natural gas production assets in the San Juan Basin. LOGOS Resources II is based in Farmington, New Mexico.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-03-12 Thorntons

Louisville, Kentucky, United States

Thorntons operates 191 c-stores in Florida, Illinois, Indiana, Kentucky, Ohio, and Tennessee. The company's mission is to provide top-of-the-line food and beverages while making giving back a top priority in every market. Thorntons was founded in 1971 and is headquartered in Louisville, Kentucky.

Buy -

Seller(S) 1

SELLER

AEP

Columbus, Ohio, United States

Category Company
Founded 1906
Sector Utilities
Employees16,800
Revenue 19.0B USD (2023)
DESCRIPTION

AEP is a utility holding company. AEP owns nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP was founded in 1906 and is based in Columbus, Ohio.


DEAL STATS #
Overall 3 of 5
Sector (Renewable Energy) 1 of 2
Type (Divestiture) 2 of 4
Country (United States) 3 of 5
Year (2016) 1 of 1
Size (of disclosed) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-10-01 AEP River Operations

St. Louis, Missouri, United States

AEP River Operations is a commercial inland barge company delivering about 45 million tons of products annually, including 10 million tons of coal.

Sell $550M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-12 Sempra Energy - U.S. Renewables Business

San Diego, California, United States

Sempra Energy - U.S. Renewables Business owns all or part of seven wind farms and one battery installation in seven states.

Buy $1.1B