Deals

Ontario Teachers' and AIG augment Mexican power portfolio

A $304 million deal for two Mexican power plants has been completed by InterGen, a company backed by Ontario Teachers’ and AIG’s private equity arms.

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InterGen, a global power generation company jointly owned by AIG Highstar Capital and the Ontario Teachers’ Pension Plan, has added two Mexican power plants to its platform in a $304 million (€207 million) transaction.

Campeche

The assets were purchased from Canadian energy company TransAlta and consist of Campeche, a 252-megawatt facility in the Yucatan Peninsula, and Chihuahua, a 259-megawatt facility in the Juarez border region. Each began operating in 2003 and has a 25-year contract with national utility Comision Federal de Electricidad, according to a statement.

InterGen chief executive Neil Smith noted the investment is a good fit with the firm’s existing portfolio, which includes plants in the UK, Netherlands, Phillipines, Australia and Mexico.

Teachers’ and AIG Highstar purchased InterGen in 2005 from subsidiaries of the Royal Dutch/Shell Group and Bechtel Group in a transaction that was valued at roughly $1.75 billion.

Energy deals have remained buoyant despite market conditions affecting other industries and buyout firms. In late January, Bahrain investment firm Arcapita purchased a Texan power plant for $695 million, while two weeks ago roughly $1.4 billion was committed to two separate oil and gas deals involving First Reserve Corporation and Standard Chartered Private Equity.