Capital Power Completes Acquisition of Hummel and Rolling Hills for $2.2 Billion
Deal News | Jun 09, 2025 | Globenewswire
Capital Power Corporation has announced the completion of its acquisition of the Hummel Station and Rolling Hills facilities for US$2.2 billion. The acquisition, which includes a 1,124MW natural gas facility in Pennsylvania and a 1,023MW plant in Ohio, received approval from the Federal Energy Regulatory Commission and adhered to the Hart-Scott-Rodino Act waiting period. To finance the deal, Capital Power utilized proceeds from recent equity and note offerings, alongside existing cash reserves and credit facilities. Capital Power's strategic acquisition, initially announced on April 14, 2025, is expected to be accretive to its financial metrics, and management maintains a positive outlook for potential growth and energy re-contracting opportunities. The company's approach to energy solutions emphasizes environmental responsibility, evidenced by its commitment to developing lower-carbon power systems.
Sectors
- Energy
- Power Generation
Geography
- Canada – Capital Power is a Canadian company based in Edmonton, Alberta.
- United States – The acquired facilities are located in Pennsylvania and Ohio, indicating the geographical scope of the acquisition.
Industry
- Energy – The article pertains to the acquisition of energy facilities, specifically natural gas plants in the United States.
- Power Generation – Capital Power is acquiring power generation facilities, highlighting its focus on energy production and distribution.
Financials
- US$2.2 billion – The acquisition price for the Hummel and Rolling Hills facilities.
- CAD $3.0 billion – Canadian dollar value of the acquisition using an exchange rate.
- $667 million – Gross proceeds from the Equity Offering.
- US$1.2 billion – Aggregate principal amount from the Notes Offering.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Capital Power Corporation | Acquiring Company | Company | A Canadian power producer focusing on power generation and lower-carbon systems. |
| Hummel Station, LLC | Target Company | Company | Owner of a 1,124MW natural gas facility in Shamokin Dam, Pennsylvania. |
| Rolling Hills Generating, LLC | Target Company | Company | Owner of a 1,023MW combustion turbine natural gas facility in Wilkesville, Ohio. |
| Alberta Investment Management Corporation | Investor | Company | Participated in the private placement as part of the Equity Offering. |
| Federal Energy Regulatory Commission | Regulatory Authority | Government | Approved the acquisition, ensuring compliance with federal regulations. |