The Carlyle Group said Friday that it had bought Cogentrix Energy's North American power plants from Goldman Sachs, as the private equity firm seeks to build up a presence in the energy business.
The terms of the deal were not disclosed. But as part of the deal, Carlyle said it would gain “significant ownership stakes†in five coal and solar power plants scattered across the country. The plants are based in cities including Jacksonville, Fla.; Portsmouth, Va.; and Daggett, Calif.
Goldman, which will keep a minority stake in the Jacksonville project, bought Cogentrix in 2003 in a $2.4 billion deal. The bank paid $115 million and took on $2.3 billion in debt.
Carlyle's takeover, which is expected to close in the fourth quarter of 2012, was financed through Carlyle Infrastructure Partners, a $1.14 billion fund.
Carlyle has also made recent investments in Plainfield Renewable Energy, a power plant in Connecticut, Core Minerals Operating Company in E vansville, Ind., and a deal with energy transportation and distribution company Sunoco Inc.
“Carlyle has long been committed to investing in energy and expanding its dedicated capabilities in this important segment of the global economy,†Daniel A. D'Aniello, Carlyle's chairman and co-founder, said in a statement. “We are delighted to have the Cogentrix development team as a key resource in the build-out of our long-term energy and power investment strategy.â€
Vinson & Elkins was the legal counsel to Carlyle.
