Power Company Acquired For $2.9 Billion
HOUSTON, TX — Reliant Resources, a unit of Reliant Energy headquartered here, has agreed to purchase Orion Power Holdings, Baltimore, MD, for $2.9 billion in cash. Orion is an electric power-generating company established in 1998 by former executives of Goldman Sachs, an investment banking and securities firm.
The acquisition will boost Reliant Resources’ power-generating capacity by 46%, adding 6,500 MW from Orion to its existing 14,100 MW. This is expected to provide an immediate increase in the company’s earnings per share.
Reliant is said to be paying a 40% premium over market value for Orion, and it will also assume $1.8 billion of debt.
Orion was created to acquire power plants in deregulated markets. Its plants are primarily in New York and the Midwest.
Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, our new smart AI search tool. Ask ACHR NEWS
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
