Ontario Power Generation (OPG) has agreed to acquire Cube Hydro, an operator of small and medium-sized hydropower facilities based in the northeast and southeast United States.
The acquisition provides additional scale to OPG’s existing US hydro platform and is expected to generate meaningful operational synergies between the two platforms, including enhanced opportunities for further capital deployment, OPG said in a statement.
“OPG has significant hydroelectric expertise in Ontario and in the U.S., so acquiring this portfolio of diversified, high-quality, long-life assets represents a natural fit for us,” said OPG’s Ken Hartwick, President & CEO. “This is also an opportunity to grow our revenue base over the long term and provide increased returns to our Shareholder, the Province of Ontario.”
This investment will be financed primarily through OPG’s corporate public debt program or other available credit facilities. Goldman Sachs & Co. LLC acted as a financial advisor to OPG on the acquisition. The transaction is subject to standard regulatory approvals. Once the acquisition is finalized, Cube Hydro will operate as part of the OPG’s US hydroelectric platform.
Established in 2014, Cube Hydro operates 19 hydropower facilities, providing 385MW of in-service capacity, with facilities located in New York, Pennsylvania, Virginia, West Virginia and North Carolina.