Aquila to acquire Cogentrix Energy for $415 million

Aquila, one of the largest wholesalers of electricity and natural gas in North America, has signed a definitive agreement to acquire privately held Cogentrix, an independent power producer.

Charlotte, NC-based Cogentrix Energy owns and operates electric generation and other power assets in the US and internationally. Cogentrix has equity interests in 28 facilities in 14 states with a total generating capability of approximately 7,800MW.

The transaction itself includes a purchase price of $415 million for 100% of the common stock of Cogentrix, as well as the assumption of $355 million of recourse debt and approximately $770 million of non-recourse project-level debt.

This transaction is expected to be immediately accretive to earnings and exceed Aquila’s targeted investment returns.

Upon completion of the transaction, which is expected in the third quarter of 2002, Cogentrix operations will be combined with Aquila Merchant Services’

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