Houston energy infrastructure company Talen Energy said Thursday that it has acquired two power generating plants in the PJM market from Summit, N.J.-based investment firm Energy Capital Partners for $2.55 billion cash and about $900 million in stock.
Talen, which plans to issue new debt to fund the cash portion of the acquisition, owns and operates about 13.1 gigawatts of power infrastructure in the U.S., including 2.2 gigawatts of nuclear power.
“This acquisition further diversifies Talen’s generation portfolio by adding both baseload capacity and strong cash flow contribution and enhances our presence in the western PJM market, which has significant data center tailwinds,” according to Talen CEO Mac McFarland.
Talen said the plants — Waterford Energy Center and Darby Generating Station south of Columbus and Lawrenceburg Power Plant west of Cincinnati near the Ohio, Indiana and Kentucky border — add about 2.6 gigawatts of natural gas generation capacity to its portfolio. Talen expects the acquisition to immediately add more than 15 percent annually to free cash flow through 2030.
Talen General Counsel John Wander worked with Kirkland & Ellis and White & Case on the deal. The Kirkland & Ellis team was led by Bill Benitez in Houston with fellow Texas lawyers Rob Goodin, Daniel Cadis, Drew Clements, Mark Dundon and Rachel Malhiet. Washington, D.C., partners John Decker and Andrew DeVore advised on energy regulatory issues. Talen’s financial advisor was RBC Capital Markets.
Milbank Tweed advised Energy Capital Partners on the transaction, which is expected to close early in the second half of 2026.
In July, The CDT Roundup covered Talen’s $3.8 billion acquisitions of Moxie Energy Freedom Center in Pennsylvania and the Guernsey Power Station in Ohio.