Deals
Blackstone, ArcLight to Buy AEP Plants for $2.2 Billion
- AEP had been looking to sell plants in U.S. Midwest for months
- Power generators’ profits have been squeezed by cheap gas
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American Electric Power Co., one of the largest electricity generators in the U.S., agreed to sell a set of power plants in the Midwest to Blackstone Group LP and ArcLight Capital Partners LLC for $2.17 billion.
The private-equity firms have formed a joint venture to buy four power plants generating about 5,200 megawatts in Ohio and Indiana, a company statement shows. The sale is slated to close in the first quarter of 2017. American Electric expects to net about $1.2 billion in cash after taxes, repayment of debt and transaction fees.