Canadian power company TransAlta has recently announced a major acquisition, purchasing Heartland Generation and its business operations in Western Canada. The deal, valued at 658 million Canadian dollars ($475 million), aims to expand TransAlta’s generation capacity in response to changing market dynamics caused by the intermittent nature of renewable energy sources.
Under the definitive agreement with infrastructure investor Energy Capital Partners, TransAlta will acquire Heartland and its assets in Alberta and British Columbia for C$390 million. Additionally, TransAlta will assume C$268 million of debt as part of the deal.
Heartland currently owns and operates a diverse portfolio of generation assets, which includes 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.
This strategic acquisition will strengthen TransAlta’s operations in Alberta and support the company’s vision for an energy transition until other zero-emitting power sources are fully developed.
TransAlta anticipates that this acquisition will positively impact cash flows while providing cost savings in the near term. The purchase will be financed using TransAlta’s existing cash reserves and credit facilities.
