EQT Infrastructure and Fortistar have agreed to sell power plant Midland Cogeneration Venture (MCV) to Toronto-based Borealis Infrastructure, the specialist investment arm of Canadian pension fund OMERS.
MCV, based in Midland Michigan, is the largest natural gas fired, combined cycle cogeneration plant in the US with a nominal capacity of 1,633MW of electricity.
EQT Infrastructure and Fortistar acquired 70 per cent and 30 per centrespectively in MCV in May of 2009.
Sales, net of fuel and purchased power, and EBITDA have increased by 27 per cent and 49 per cent respectively from 2009 to 2012.
“MCV has enhanced its ability to provide reliable electricity and steam to its customers and the local community for many years to come. The focused operational improvement strategy has substantially exceeded the original expectations which we attribute to the extraordinary commitment of the MCV employees to implement this strategy. EQT Infrastructure and Fortistar are divesting a company which is more reliable, more energy efficient and better positioned for its future than when it was acquired,” said Glen Matsumoto, partner at EQT Partners.
Mark Comora, president of Fortistar, added, “We are pleased to have had the opportunity of working with EQT Infrastructure and the MCV management team for the past three years. It is a testament of what can be achieved when everyone works together towards one common goal – to provide cost effective, reliable and environmentally sensitive power for Michigan.”
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