ContourGlobal plc announced that it has reached agreement with Alpek S.A.B. de C.V, (Alpek) to acquire Alpek’s portfolio of two natural gas-fired combined heat and power (CHP) plants, together with development rights and permits for a third plant, for USD 724M in cash (the Acquisition). An additional payment at closing estimated at USD 77M represents the Value Added Tax assessed for the transaction and is expected to be refunded in full within 12 months of closing. The two CHP plants will provide electricity and steam under long-term contracts to subsidiaries of Alfa S.A.B. de C.V (Alfa Group), a leading Mexican industrial conglomerate, and other commercial and industrial customers.
The CHP plants are located on sites adjacent to, and interconnected with, Alpek’s industrial facilities and have a gross installed capacity of 518MW. Additionally, ContourGlobal will be acquiring the development rights and permits for a third adjacent plant with a planned capacity of 414MW.
Joseph C. Brandt, President and CEO of ContourGlobal commented, “We are delighted to expand our cogeneration Solutions business into Mexico with the acquisition of Alpek’s combined heat and power plants. We have developed our Solutions business over the past decade with blue chip clients like Alpek and look forward to powering their growth over the long-term.”
