25th Nov 2019 18:54
(Alliance News) - ContourGlobal PLC said Monday it has closed the acquisition acquire Alpek SAB de CV's portfolio of two natural gas-fired combined heat and power plants, together with development rights and permits for a third plant, for USD724 million in cash.
The mid-cap power generation company said the two plants will provide electricity and steam under long-term contracts to subsidiaries of Alfa SAB de CV and other commercial and industrial customers.
Alfa is a Mexican diversified group of businesses that produces petrochemicals, aluminium auto components, and refrigerated foods.
ContourGlobal President & Chief Executive Joseph Brandt said: "With the acquisition of these two power plants we are delighted to expand our Solutions business into Mexico and to commence operating this world-class, highly efficient low carbon combined heat and power business for Alpek and other commercial clients in Mexico. We have developed our Solutions business over the past decade with blue chip clients like Alpek and look forward to growing with them in the future.
"The acquisition is a further example of our commitment to pursue high quality growth through operationally led strategic acquisitions. The assets are consistent with our strategy of developing and operating long-life power assets, backed by multi-year offtake agreements delivering high quality hard currency revenues and financed on a non-recourse basis. We are grateful to the Bank of Nova Scotia and the syndicate arranged by them for supporting this important acquisition."
Shares in ContourGlobal closed flat in London on Monday at 210.00 pence each.
By Paul McGowan; [email protected]
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