Constellation and Calpine Corp. right this moment introduced they’ve entered right into a definitive settlement beneath which Constellation will purchase Calpine in a money and inventory transaction valued at an fairness buy worth of roughly $16.4 billion.
Already the nation’s largest producer of 24/7 emissions-free electrical energy, Constellation will add Calpine, the biggest U.S. producer of power from low-emission pure gasoline era and an expanded renewable power portfolio, together with the biggest geothermal era operation within the U.S. The mixture additionally varieties the nation’s main aggressive retail electrical provider, offering 2.5 million prospects with a broader array of custom-made power and sustainability options.
“This acquisition will assist us higher serve our prospects throughout America, from households to companies and utilities,” stated Joe Dominguez, president and CEO, Constellation. “By combining Constellation’s unmatched experience in zero-emission nuclear power with Calpine’s industry-leading, best-in-class, low-carbon pure gasoline and geothermal era fleets, we can supply the broadest array of power services out there within the {industry}.”
Calpine’s low-emission pure gasoline vegetation will play a key position in sustaining grid reliability for many years to return as prospects transition to cleaner power sources. Each corporations have been early buyers in carbon sequestration expertise to assist guarantee America’s plentiful pure gasoline can proceed to reliably energy prospects. On the similar time, Constellation will put money into including extra zero-emission power to the grid by extending the lifetime of current clear power sources, exploring new superior nuclear initiatives, investing in renewables and growing the output of current nuclear vegetation, along with restarting the Crane Clear Vitality Heart in Pennsylvania.
“That is an unimaginable alternative to convey collectively high tier era fleets, main retail buyer companies and the very best folks in our {industry} to assist drive a stronger American financial system for a cleaner, more healthy and extra sustainable future,” stated Andrew Novotny, president and CEO of Calpine. “Collectively, we shall be higher positioned to convey accelerated funding in the whole lot from zero-emission nuclear to battery storage that can energy our financial system in a approach that places folks and the environment first. It’s a win for each American household and enterprise in our newly mixed footprint that wishes clear and dependable power. ECP’s dedication to those targets during the last seven years was essential to the progress now we have made as an organization and to laying a basis for future development.”
“Since buying Calpine in 2018, now we have centered on unlocking worth and driving future potential development avenues for the enterprise, which we imagine have been acknowledged by way of this mix,” stated Tyler Reeder, president & managing associate of ECP. “We really can’t thank the Calpine workforce sufficient for his or her partnership and are excited to assist their continued contributions to the Constellation workforce. Following the closing of the transaction, we are going to stay dedicated as a shareholder of Constellation, reflecting our excessive confidence within the continued worth and development potential created by this mix.”
Following the shut of the transaction, Constellation will proceed to be headquartered in Baltimore and can proceed to keep up a big presence in Houston, the place Calpine is at present headquartered.
Advisors
Lazard is serving as monetary advisor to Constellation. J.P. Morgan Securities LLC can be serving as monetary advisor to Constellation, and Kirkland & Ellis is serving as authorized counsel.
Evercore served as lead monetary advisor to Calpine. Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC., and Barclays US are serving as further monetary advisors to Calpine and ECP, and Latham & Watkins and White & Case are serving as authorized counsel.
