DGAP-News: EQT Partners AB: EQT Infrastructure to sell MCV
(firmenpresse) - DGAP-News: EQT Partners AB / Key word(s): Disposal/Private Equity
EQT Partners AB: EQT Infrastructure to sell MCV
02.10.2012 / 15:00
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EQT Infrastructure to sell MCV
- EQT Infrastructure and Fortistar have agreed to sell MCV to Borealis
Infrastructure
- During EQT Infrastructure's and Fortistar's ownership , MCV has
increased the plant's capacity, operating efficiency and reliability
through a broad range of operational improvement initiatives and
improvements to key contracts
- MCV sales and EBITDA have increased by 27% and 49% respectively from
2009 to 2012
EQT Infrastructure and Fortistar have signed a definitive agreement to sell
Midland Cogeneration Venture ('MCV') to Toronto-based Borealis
Infrastructure ('Borealis'). Borealis invests in and manages infrastructure
assets on behalf of OMERS; one of Canada's largest pension funds.
EQT Infrastructure and Fortistar acquired 70% and 30% respectively in MCV
in May of 2009. A strategy to improve efficiency, reliability and capacity
of the plant has been successfully executed through the implementation of
an extensive operational improvement program. MCV has also begun
development and permitting work for a 640 megawatt expansion of the
facility, which would enable it to expand its electricity and steam service
to existing customers and potentially provide these services to additional
customers. Sales (net of fuel and purchased power) and EBITDA have as a
result of the implemented measures increased by 27% and 49% respectively
from 2009 to 2012.
'MCV has enhanced its ability to provide reliable electricity and steam to
its customers and the local community for many years to come. The focused
operational improvement strategy has substantially exceeded the original
expectations which we attribute to the extraordinary commitment of the MCV
employees to implement this strategy. EQT Infrastructure and Fortistar are
divesting a company which is more reliable, more energy efficient and
better positioned for its future than when it was acquired', says Glen
Matsumoto, Partner at EQT Partners, Inc., Investment Advisor to EQT
Infrastructure.
'During the ownership by EQT Infrastructure and Fortistar, MCV has been
through a transformation that only few could have imagined back in May
2009. I am very proud that the operational performance of the plant has
increased significantly while employee safety has further improved. The
employees of MCV are excited about continuing their commitment to
operational excellence under the ownership of Borealis', says Roger Kelley,
CEO of MCV.
Mark Comora, President of Fortistar, said 'We are pleased to have had the
opportunity of working with EQT Infrastructure and the MCV management team
for the past three years. It is a testament of what can be achieved when
everyone works together towards one common goal - to provide cost
effective, reliable and environmentally sensitive power for Michigan.'
'MCV is an excellent facility with a strong management team, and it is
exactly the type of large-scale infrastructure asset we look for to help us
generate consistent, long-term returns,' said Michael Rolland, Borealis
President and CEO. 'Our teams in both Toronto and New York look forward to
working with the MCV management team and building on the success that they
have been able to achieve over the past few years.'
The transaction is expected to close by year-end and is subject to receipt
of regulatory approvals and satisfaction of customary closing conditions.
EQT Infrastructure and Fortistar have been advised by Credit Suisse, RBC
Capital Markets and Shearman&Sterling. Advisors for Borealis included
Torys LLP.
EQT Infrastructure
Glen Matsumoto, Partner, EQT Partners +1 914 607 4502
Johan Hähnel, EQT Infrastructure Spokesperson +46 8 506 55 334
MCV
Roger Kelley, CEO +1 989 633 7900
Borealis
Lori McLeod, Media Relations +1 416 369 2399
About EQT
EQT is the leading private equity group in Northern Europe with over EUR 19
billion in raised capital and multiple investment strategies. Together with
a superior network of independent Industrial Advisors, EQT implements its
investment strategy by acquiring or financing good medium-sized to large
companies in Northern and Eastern Europe, Asia and the United States,
supporting their development into leading companies. Development is
achieved by an industrial strategy with focus on growth. Since inception,
EQT has invested more than EUR 10.8 billion in around 100 companies and
exited close to 50. EQT-owned companies have more than 550,000 employees.
EQT Partners, acting as investment advisor to the managers of each EQT
fund, has around 120 investment professionals with an extensive industrial
and financial competence. EQT Partners and its affiliates have offices in
Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York,
Shanghai, Singapore, Stockholm, Warsaw and Zurich.
More information can be found on www.eqt.se
About MCV
MCV, based in Midland Michigan, is the largest natural gas fired, combined
cycle cogeneration plant in the United States with a nominal capacity of
1,633 MW of electricity and 1,500 kp/hr of steam that commenced commercial
operation in 1990. A significant portion of capacity (~80% or 1,240 MW) has
been contracted to Consumers Energy until 2025 with up to an additional
~10% (or 150 MW) contracted to DOW until 2025.
More information can be found on www.midcogen.com
About Fortistar
Fortistar, headquartered in White Plains, New York, has a 25 year history
of investing in and managing power assets. Fortistar currently has
ownership stakes in over 60 projects in North America with total generation
capacity of 3,000 megawatts. Fortistar also has a growing renewable
business which currently focuses on the landfill gas and biomass sectors.
These portfolios have a total capacity of about 400 Megawatts. Fortistar
has a strong record of operational excellence and demonstrated capability
of enhancing output and improving efficiency at its other facilities.
More information can be found on www.fortistar.com
About Borealis Infrastructure
Borealis Infrastructure is a leader in direct infrastructure investing with
over a decade of investment experience and almost USD 20 billion in capital
under management. Borealis invests in and manages a diversified portfolio
of large-scale infrastructure assets exhibiting stability and strong cash
flows, in sectors including energy, transportation and government-regulated
services. It has offices in Toronto, London and New York. Borealis is the
infrastructure investment arm of the OMERS Worldwide group of companies.
OMERS is one of Canada's largest pension funds with net assets of more than
CAD 55 billion and a AAA credit rating.
More information can be found on www.borealis.ca
End of financial news
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