Investment firm Platinum Equity has completed the sale of the 810MW Hunterstown natural gas-fired power plant in Gettysburg, Pennsylvania and related assets to LS Power.
The financial terms of the deal were not revealed.
Built in 2003, the Hunterstown combined-cycle gas turbine generating power plant delivers electricity to the PJM (Met-Ed) 500kV grid. It generates enough energy to supply electricity to over 600,000 households.
The PJM regional power area covers all or parts of Delaware, Illinois, Michigan, New Jersey, Indiana, Kentucky, Maryland, North Carolina, Ohio, Virginia, West Virginia Pennsylvania, Tennessee, and the District of Columbia.
Platinum Equity acquired the Hunterstown natural gas-fired power plant from GenOn, a unit of NRG Energy, in 2018. NRG Energy filed for bankruptcy protection in June 2017.
The sale of the American natural gas-fired power plant to LS Power was initially announced in January this year.
Platinum Equity co-president Louis Samson said: “Hunterstown is a good example of how Platinum can use its playbook to create value in different ways.
“The Hunterstown facility is an outstanding asset, with high free cash flow and strong recurring revenue, acquired from a seller that needed a divestiture solution during a time of distress, so it checked a lot of the boxes we typically look for.
“Our experience with corporate carveouts and our willingness to be open minded put us in position to help.”
Established in 1990, LS Power operates over 16GW gas generation fleet that supports the company’s multiple energy transition platforms.
The platforms are focused on wind, hydro and solar power, battery energy storage, demand response, microgrids, renewable fuels, electric transportation, and transmission infrastructure.
For the transaction, Evercore was the financial adviser to Platinum Equity while Latham & Watkins served as legal counsel to the company.
