Business

OPG finalizes acquisition of Cube Hydro

Ontario Power Generation (OPG) has finalized the acquisition of Cube Hydro Partners and Helix Partners (collectively Cube Hydro), an owner and operator of small and medium-sized hydropower facilities in the northeast and southeast U.S., from I Squared Capital, an infrastructure-focused private equity firm.

Eagle Creek Renewable Energy, which OPG acquired in November 2018, and Cube Hydro will be combined to form OPG’s U.S. hydro platform.

“The acquisition of Cube Hydro builds on our 2018 purchase of Eagle Creek Renewable Energy,” said Ken Hartwick, OPG’s president and chief executive officer. “These high quality, clean generation assets provide additional scale to OPG’s existing U.S. hydro portfolio.”

The Cube Hydro purchase adds 19 hydroelectric facilities in five states to OPG’s hydro platform. This brings the total to 85 hydro generating stations in the U.S., representing 619 MW of capacity. In addition, the companies own minority interests equivalent to about 10 MW in 13 other hydroelectric facilities and two solar facilities in New England.

OPG says its U.S. hydro platform’s environmental profile is well-positioned for continued de-carbonization of the electricity industry. The transaction will provide enhanced returns for Ontarians, providing stable cash flows for generations to come, with no impact on electricity bills.

Goldman Sachs & Co. LLC acted as a financial advisor and Dentons served as legal counsel to OPG on the acquisition. Centerview Partners acted as financial advisor and Sidley Austin LLP, Troutman Sanders LLP, and Davis Polk & Wardwell LLP served as legal counsel to I Squared Capital on this transaction.

The U.S. hydroelectric platform will continue to operate independently as a wholly owned subsidiary of OPG, with its own Board of Directors and management team. Its financial results will be consolidated into OPG’s financial results.

OPG provides almost half the power Ontarians rely on every day. The company expertise in nuclear, hydro, biomass, solar and gas.