ContourGlobal has reached agreement with Alpek S.A.B. de C.V to acquire Alpek’s portfolio of two natural gas–fired combined heat and power plants, together with development rights and permits for a third plant, for $724 million in cash.
An additional payment at closing estimated at $77 million represents the value-added tax assessed for the transaction and is expected to be refunded in full within 12 months of closing.
The two facilities will provide electricity and steam under long-term contracts to subsidiaries of Alfa S.A.B. de C.V, a Mexican industrial conglomerate, and other commercial and industrial customers.
The combined heat and power plants are located on sites adjacent to, and interconnected with, Alpek’s industrial facilities and have a gross installed capacity of 518 megawatts. In addition, ContourGlobal will acquire the development rights and permits for a third adjacent plant with a planned capacity of 414 megawatts.
