M&A Deal Summary

NRG Acquires Texas Genco Holdings

On October 3, 2005, NRG acquired utilities company Texas Genco Holdings from Hellman & Friedman, KKR, The Blackstone Group and TPG for 5.8B USD

Acquisition Highlights
  • This is NRG’s 2nd transaction in the Utilities sector.
  • This is NRG’s largest (disclosed) transaction.
  • This is NRG’s 2nd transaction in the United States.
  • This is NRG’s 1st transaction in Texas.

M&A Deal Summary
Date 2005-10-03
Target Texas Genco Holdings
Sector Utilities
Buyer(s) NRG
Sellers(s) Hellman & Friedman
KKR
The Blackstone Group
TPG
Deal Type Add-on Acquisition
Deal Value 5.8B USD

Target

Texas Genco Holdings

Houston, Texas, United States
Texas Genco Holdings, Inc., based in Houston, Texas, is an electric power generating company with over 14,000 megawatts of generation capacity. It sells electric generation capacity, energy and ancillary services in one of the nation's largest power markets, the Electric Reliability Council of Texas (ERCOT). Texas Genco has one of the most diversified generation portfolios in Texas, using natural gas, oil, coal, lignite, and uranium fuels. The company owns and operates 60 generating units at 11 electric power-generating facilities and owns a 30.8 percent interest in a nuclear generating plant.

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Buyer(S) 1

Buyer

NRG

Houston, Texas, United States
Category Company
Founded 1989
Sector Utilities
Employees18,131
Revenue 28.8B USD (2023)
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 STATS #
Overall 2 of 16
Sector (Utilities) 2 of 7
Type (Add-on Acquisition) 1 of 11
State (Texas) 1 of 7
Country (United States) 2 of 15
Year (2005) 1 of 1
Size (of disclosed) 1 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-09-30 Landfill gas-to-energy power projects

United States

Landfill Gas Collection System is now operational, producing electricity onto the provincial grid, using landfill gas as the fuel source.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-05-01 Reliant Energy Texas Retail

Houston, Texas, United States

Reliant Energy Texas Retail LLC, retail business, creating a strong, reliable and competitive business for the benefit of Texas customers.

Buy $288M

Seller(S) 4

SELLER

Hellman & Friedman

San Francisco, California, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1984
PE ASSETS 50.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Hellman & Friedman (H&F) is a large private equity firm on the West Coast of the US. H&F focuses on control and minority investments in a variety of transaction structures and will consider opportunities across the US and Europe. H&F seeks buyouts and business in need of restructurings that operate in defensible markets with predictable revenue and earnings growth. Target sectors include financial services, healthcare, indusrial, energy, insurance, media, marketing, professional services, software, and information services. H&F's target equity investment size is $300 million to $1 billion. Hellman & Friedman was formed in 1984 and has offices in San Francisco, New York City, and London.

DEAL STATS #
Overall 7 of 59
Sector (Utilities) 1 of 2
Type (Add-on Acquisition) 1 of 13
State (Texas) 1 of 4
Country (United States) 6 of 43
Year (2005) 1 of 2
Size (of disclosed) 2 of 19
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-28 GeoVera

Fairfield, California, United States

GeoVera is a provider of specialty residential property insurance in markets that are underserved by other insurance carriers due to their exposure to certain perils, such as hurricanes or earthquakes. GeoVera offers specialty homeowners products primarily on a non-admitted, or excess and surplus line, basis in wind-exposed areas in the Southeast United States and Hawaii, and residential earthquake products primarily on an admitted basis in the Western United States. GeoVera was founded in 1993 and is based in Fairfield, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-25 Formula One World Championship

Knightsbridge, United Kingdom

Formula One World Championship Ltd. is an organizer of racing championship, including the right to stage and promote the events, to sell broadcast footage (via Formula One Administration, and to offer sponsorship and hospitality packages (via APM and Allsport Management).

Sell -
SELLER

KKR

New York, New York, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.

DEAL STATS #
Overall 16 of 207
Sector (Utilities) 1 of 4
Type (Add-on Acquisition) 3 of 67
State (Texas) 3 of 9
Country (United States) 13 of 89
Year (2005) 4 of 4
Size (of disclosed) 8 of 39
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-17 Rockwood Holdings

Princeton, New Jersey, United States

Rockwood Holdings, Inc. is a provider of specialty chemicals, pigments, additives and advanced materials to specialized manufacturing and technology companies throughout the world. The company is a global producer for many of its products including lithium compounds and chemicals, surface treatment chemicals, TiO2 pigments for synthetic fibers and ceramic hip joints.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-01 TDC Group

Copenhagen, Denmark

TDC Group is a provider of communications and entertainment solutions. TDC Group has become two companies, each with its own core areas, which work towards a digital future, TDC NET delivers the best mobile network and the fastest fixed-line connections – and represents Denmark’s digital future with a roll-out of fiber and 5G. Nuuday is the leading service provider of digital services within TV, broadband, network, and telephony for private customers and businesses and consists of nine-strong brands.

Buy $15.8B
SELLER

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, New York.

DEAL STATS #
Overall 26 of 174
Sector (Utilities) 1 of 2
Type (Add-on Acquisition) 9 of 67
State (Texas) 4 of 19
Country (United States) 18 of 105
Year (2005) 6 of 8
Size (of disclosed) 8 of 57
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-15 HealthMarkets

North Richland Hills, Texas, United States

HealthMarkets is an independent field marketing organization (“FMO”) for health insurance and supplemental products. HealthMarkets was founded in 1983 and is based in North Richland Hills, Texas.

Buy $1.6B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-05 Sithe Global Power

New York, New York, United States

Sithe Global Power is an international development company engaged in the development, construction, acquisition and operation of electric generation facilities in attractive markets around the world.

Buy $3.1B
SELLER

TPG

Fort Worth, Texas, United States

Investor Investor Investor Investor

Category Private Equity Firm
Founded 1992
PE ASSETS 137.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TPG Capital is a global, mega-sized private investment firm that manages a family of funds focused on private equity, real estate, venture capital, public equity and debt investing. TPG invests in opportunities across a broad range of industries and geographies. TPG generally seeks to invest in established businesses that can benefit from the Firm's operational experience and connections. Industries of interest include consumer, retail, healthcare, industrials, digital media, natural resources, energy, real estate, technology, and software. TPG was formerly known as Texas Pacific Group and was originally established in 1992 by David Bonderman, James Coulter and William Price. The Firm is based in Forth Worth, Texas with additional offices in Europe, Asia, and Australia.

DEAL STATS #
Overall 25 of 267
Sector (Utilities) 1 of 5
Type (Add-on Acquisition) 7 of 94
State (Texas) 4 of 26
Country (United States) 19 of 193
Year (2005) 4 of 8
Size (of disclosed) 9 of 71
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-01 Eutelsat Group

Issy-les-Moulineaux, France

Eutelsat Group is a satellite operator that provides transponder capacity for video broadcasters, European Direct-to-Home (DTH) operators, European governments, and the US government, as well as for corporate data networks and other voice and data providers. Eutelsat Group was founded in 1977 and is based in Issy-les-Moulineaux, France.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-12 Aerie

Durham, North Carolina, United States

Aerie is a pharmaceutical company focused on the discovery, development, and commercialization of first-in-class ophthalmic therapies for the treatment of patients with eye diseases and conditions including open-angle glaucoma, dry eye, and diabetic macular edema (DME) and wet age-related macular degeneration (wet AMD). Aerie was founded in 2005 and is based in Durham, North Carolina.

Buy -
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