Wedoany.com Report-Jul. 26, Talen Energy, an independent power producer, has agreed to acquire two combined-cycle gas-fired plants (CCGTs) in the Pennsylvania-New Jersey-Maryland (PJM) power market for a net acquisition price of $3.5 billion. The plants include Caithness Energy’s Moxie Freedom Energy Centre in Pennsylvania and BlackRock’s Guernsey Power Station in Ohio. Talen will also acquire equity interests in Guernsey from Global Infrastructure Partners’ funds managed under BlackRock, with the transactions valued at $3.8 billion.

The acquisitions expand Talen’s fleet and increase its annual generation capacity from 40TWh to 60TWh.

The acquisition offers a valuation multiple of 6.7 times the 2026 enterprise value to earnings before interest, taxation, depreciation, and amortization, reflecting the plants’ operational efficiency. The deal is expected to boost Talen’s free cash flow per share by over 40% in 2026 and more than 50% through 2029. To finance the acquisitions and refinance existing debts, Talen will issue $3.8 billion in new debt, including secured and unsecured notes. The transactions are set to close by the fourth quarter of 2025, pending approvals from the Federal Energy Regulatory Commission and compliance with the Hart-Scott-Rodino Act.

Talen Energy’s president and CEO, Mac McFarland, stated: “This acquisition enhances Talen’s fleet by selectively adding modern, highly efficient baseload H-class CCGTs in Talen’s key markets, where we are an innovator in data centre contracting. The transaction is immediately and highly accretive, maintains our balance sheet discipline and adds more than the equivalent of another Susquehanna nuclear plant to our platform, further enabling large load service.”

The acquisitions increase Talen’s annual generation capacity from 40 terawatt hours (TWh) to 60 TWh, strengthening its ability to provide reliable, scalable low-carbon energy solutions for data centers and large commercial clients. Caithness Energy Jr chairman and CEO, James D Bishop, noted: “Caithness has built an extensive portfolio of leading-edge power generation facilities to support our valued customers. We are proud of what we have accomplished, and this sale to Talen positions the assets for continued success under a strong and successful management team.”

Financial advisory services for Talen were provided by RBC Capital Markets and Citi, with legal support from Kirkland & Ellis and White & Case. Lazard advised Caithness, with Paul Hastings as legal counsel, while Morgan Stanley and Simpson Thacher & Bartlett supported Global Infrastructure Partners. In June 2025, Talen partnered with Amazon to supply carbon-free electricity from its Susquehanna nuclear plant in Pennsylvania to Amazon Web Services data centers, further expanding its role in sustainable energy solutions.