TransAlta to acquire Heartland Generation from Energy Capital for $658M

TransAlta announced that it has entered into a definitive share purchase agreement with an affiliate of Energy Capital Partners, the parent of Heartland Generation Ltd. and Alberta Power Ltd., pursuant to which TransAlta will acquire Heartland and its entire business operations in Alberta and British Columbia. Heartland owns and operates generation assets consisting of 507 megawatts of cogeneration, 387 MW of contracted and merchant peaking generation, 950 MW of gas-fired thermal generation, transmission capacity and a development pipeline that includes the 400 MW Battle River Carbon Hub. The purchase price for the acquisition is $390M, subject to working capital and other adjustments, as well as the assumption of $268M of low-cost debt. The company will finance the transaction using cash on hand and draws on its credit facilities. The Agreement provides that economic benefits arising after October 31, 2023 will be to the account of TransAlta. The Agreement is subject to customary closing conditions, including receipt of regulatory approvals. The transaction is expected to close in the first half of 2024.