Date: May 28, 2009
Source: Midland Cogeneration Venture
EQT Infrastructure and FORTISTAR Close Acquisition of Midland Cogeneration Venture
The EQT Infrastructure Fund (EQT Infrastructure) and FORTISTAR, announced today that they together through affiliates have completed the acquisition of Midland Cogeneration Venture Limited Partnership (MCV or the Company). EQT Infrastructure and FORTISTAR now hold 70% and 30% of the equity interests, respectively, in MCV.
MCV is one of the largest gas fired cogeneration projects in the United States. The facility is capable of producing up to 1,560 megawatts of electricity and up to 1.35 million pounds per hour of process steam for industrial use. MCV's electrical capacity represents approximately 10% of the power consumption for Michigan's Lower Peninsula and is a critical energy resource that enhances system reliability within Michigan. The core power generation equipment, which is among the most reliable technology in the industry, was manufactured by ABB (now Alstom) and General Electric. With significant existing infrastructure and a strong operational track record, MCV is well positioned for adding efficient generation capacity to meet future needs of Michigan and to replace aging coal fired generation facilities.
WestLB, Union Bank N.A., Espirito Santo Investment, New York Branch, Cobank, Credit Suisse, GE unit GE Energy Financial Services, SEB and U.S. Bank acted as Joint Lead Arrangers for the acquisition financing.
About EQT Infrastructure
EQT Infrastructure is a euro 1.2 billion infrastructure fund advised by EQT Partners, a leading global private equity advisory firm founded in 1994 with headquarters in Stockholm, Sweden. The fund invests primarily in existing infrastructure and has the flexibility to invest globally. The fund focuses on infrastructure investments where EQT's history of acting as a catalyst to transform and improve operations in combination with its large global industrial network can make an important difference to the acquired company. EQT Infrastructure, like all other funds advised by EQT Partners, has a clear focus on developing, improving and growing its portfolio companies.
EQT Infrastructure is one of a group of private equity funds that together have raised approximately euro 13 billion across 12 funds. EQT funds realise their business concept by acquiring, financing and developing high-quality medium-sized companies in Northern and Eastern Europe, North America and Asia. EQT serves as an active owner and works in close cooperation with the management of the companies it acquires, to develop and implement value-enhancing strategies. In total, EQT funds have invested in more than 70 companies.
MCV is the first investment by EQT Infrastructure and the first direct investment by an EQT fund in the United States. EQT Partners, the exclusive investment advisor to all EQT funds, opened its New York office in the second quarter of 2008.
More information about EQT Infrastructure can be found on www.eqt.se.
About FORTISTAR
FORTISTAR, headquartered in White Plains, New York, has a 25 year history of owning and managing power assets and currently has ownership stakes in over 60 projects in North America, with total generation capacity of 3,000 megawatts. FORTISTAR has focused on cogeneration assets since its inception and has ownership stakes in four such assets with total capacity of over 2,600 megawatts. FORTISTAR has a strong record of operational excellence and demonstrated capability of enhancing output and reducing fuel utilization at its Lockport and North Tonawanda cogeneration facilities in New York and more recently at the Channelview Cogeneration facility in Texas.
FORTISTAR also has a growing renewable business which currently focuses on landfill gas and biomass sectors. FORTISTAR Methane Group owns and manages one of the largest landfill gas power project portfolios in the United States with approximately 12% market share of all installed projects in the United States and approximately 235 megawatts of total generation capacity. Collectively, the destruction of methane gas from FORTISTAR's renewable portfolio is now equivalent to destroying 9.3 million tons of carbon dioxide per year which, in turn, is equivalent to carbon dioxide emitted from 1.6 million cars, the production of 990 megawatts of electricity from coal or the planting of 2.3 million acres of trees (the equivalent to an area equal to two-thirds the size of Connecticut). FORTISTAR Biomass Group owns and manages a portfolio of biomass power projects with a total capacity of over 165 megawatts.
More information about FORTISTAR can be found on www.fortistar.com.
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