Divestiture • Utilities

Cleco Acquires NRG South Central Generating

On January 16, 2019, Cleco acquired utilities company NRG South Central Generating from NRG for 1.0B USD

Acquisition Context
  • This is Cleco’s 1st transaction in the Utilities sector.
  • This is Cleco’s largest (disclosed) transaction.
  • This is Cleco’s 1st transaction in the United States.
  • This is Cleco’s 1st transaction in Minnesota.

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M&A Deal Summary

Date January 16, 2019
Target NRG South Central Generating
Sector Utilities
Buyer(s) Cleco
Sellers(s) NRG
Deal Type Divestiture
Deal Value 1.0B USD

Target Company

NRG South Central Generating

Minneapolis, Minnesota, United States
NRG South Central Generating LLC is a provider of 3,555 MW, transmission operations and contracts to provide wholesale power. NRG South Central Generating LLC is based in Minneapolis, Minnesota.
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Buyer Overview 1

Buyer

Cleco

Pineville, Louisiana, United States

Category Company
Founded 1934
Sector Utilities
Employees1,206
Revenue 1.2B USD (2015)
DESCRIPTION

Cleco Corp. is a utility holding company. Cleco owns a regulated electric utility company, Cleco Power LLC, which is engaged principally in the generation, transmission, distribution, and sale of electricity primarily in Louisiana. Cleco Power owns 11 generating units with a total nameplate capacity of 3,340 megawatts.


Deal Context for Buyer #
Overall 1 of 1
Sector: Utilities 1 of 1
Type: Divestiture 1 of 1
State: Minnesota 1 of 1
Country: United States 1 of 1
Year: 2019 1 of 1
Size (of disclosed) 1 of 1

Seller Profile 1

SELLER

NRG

Houston, Texas, United States

Category Company
Founded 1989
Sector Utilities
Employees15,637
Revenue 28.1B USD (2024)
DESCRIPTION
Entrance to an NRG office in downtown Houston, Texas.
Entrance to an NRG office in downtown Houston, Texas.

NRG is a wholesale power generation company. NRG engages in the ownership, development, construction, and operation of power generation facilities; the transacting in and trading of fuel and transportation services; and the trading of energy, capacity and related products in the US and select international markets. NRG was formed in 1989 and is based in Houston, Texas.


Deal Context for Seller #
Overall 5 of 8
Sector: Utilities 1 of 3
Type: Divestiture 5 of 7
State: Minnesota 1 of 1
Country: United States 5 of 8
Year: 2019 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-06-14 GenOn

Houston, Texas, United States

GenOn is a provider of generators wholesale electricity in the United States. With power generation facilities located in key regions of the country and a generation portfolio of approximately 24,600 megawatts, GenOn is helping meet the nation’s electricity needs. GenOn was founded in 1982 and is based in Houston, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-24 Direct Energy

Houston, Texas, United States

Direct Energy LP is retail provider of electricity, natural gas, and home and business energy-related products and services. Direct Energy was founded in 1997 and is based in Houston, Texas.

Buy $3.6B