Divestiture • Energy Services and Equipment

ArcLight Capital Partners and DTE Acquire Lincoln Generating Facility

On November 1, 2004, infrastructure investor ArcLight Capital Partners and DTE acquired energy services and equipment company Lincoln Generating Facility from Allegheny Energy for 173M USD

Acquisition Context
  • This is ArcLight Capital Partners’ 8th and DTE’s 1st transaction in the Energy Services and Equipment sector.
  • This is ArcLight Capital Partners’ 8th and DTE’s 2nd largest (disclosed) transaction.
  • This is ArcLight Capital Partners’ 22nd and DTE’s 3rd transaction in the United States.
  • This is ArcLight Capital Partners’ 3rd and DTE’s 1st transaction in Illinois.
Investment Fate
  • Lincoln Generating Facility was sold to a consortium of buyers in 2007.

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M&A Deal Summary

Date November 1, 2004
Target Lincoln Generating Facility
Sector Energy Services and Equipment
Buyer(s) ArcLight Capital Partners
DTE
Sellers(s) Allegheny Energy
Deal Type Divestiture
Deal Value 173M USD

Target Company

Lincoln Generating Facility

Manhattan, Illinois, United States
Lincoln Generating Facility LLC is a simple-cycle plant that provides electric generating capacity to the PJM Interconnection market during periods of peak demand. Lincoln Generating Facility is based in Manhattan, Illinois.
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Buyers Overview 2

Buyer

ArcLight Capital Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Infrastructure
Founded 2001
PE ASSETS 20.0B 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 Context for Buyer #
Overall 23 of 102
Sector: Energy Services and Equipment 8 of 37
Type: Divestiture 1 of 8
State: Illinois 3 of 3
Country: United States 22 of 87
Year: 2004 6 of 6
Size (of disclosed) 8 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-09-01 Baldwin Bridge

Orange Beach, Alabama, United States

Baldwin County Bridge Company owned and operated a two-lane toll bridge that spans the Gulf Intracoastal Waterway in Baldwin County, Alabama.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-01 Courant Spain Holdings

Barcelona, Spain

Courant Spain Holdings, SAS owns and operates nine cogeneration power plants located throughout Spain with a combined power generation capacity of 110 MW and thermal capacity of 30 MWe. The plants sell their power output into the Spanish wholesale market under an incentivized regulated tariff structure and sell steam to local industrial facilities. In addition, several of the cogeneration plants have associated carbon dioxide recovery plants that sell approximately 40k metric tons of carbon dioxide annually into the Spanish industrial gas market.

Buy -
Buyer

DTE

Detroit, Michigan, United States

Category Company
Founded 1903
Sector Utilities
Employees4,700
Revenue 12.5B USD (2024)
DESCRIPTION
DTE Energy's corporate headquarters in downtown Detroit, Michigan.
DTE Energy's corporate headquarters in downtown Detroit, Michigan.

DTE is a diversified energy company involved in the development and management of energy-related businesses and services nationwide. DTE was founded in 1903 and is headquartered in Detroit, Michigan.


Deal Context for Buyer #
Overall 3 of 4
Sector: Energy Services and Equipment 1 of 1
Type: Divestiture 1 of 2
State: Illinois 1 of 1
Country: United States 3 of 4
Year: 2004 1 of 1
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-05-31 MCN Energy Group

Detroit, Michigan, United States

MCN Energy Group, Inc., is an integrated energy company. MCN is primarily involved in natural gas production, gathering, processing, transmission, storage and distribution, electric power generation and energy marketing.

Buy $4.6B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-08-10 Lincoln Generating Facility

Manhattan, Illinois, United States

Lincoln Generating Facility LLC is a simple-cycle plant that provides electric generating capacity to the PJM Interconnection market during periods of peak demand. Lincoln Generating Facility is based in Manhattan, Illinois.

Sell -

Seller Profile 1

SELLER

Allegheny Energy

Greensburg, Pennsylvania, United States

Category Company
Founded 1925
Sector Utilities
Employees4,211
DESCRIPTION

Allegheny Energy, Inc. an electric utility company. Allegheny Energy operates and delivers electric services.


Deal Context for Seller #
Overall 1 of 1
Sector: Energy Services and Equipment 1 of 1
Type: Divestiture 1 of 1
State: Illinois 1 of 1
Country: United States 1 of 1
Year: 2004 1 of 1
Size (of disclosed) 1 of 1