NRG Yield To Buy Privately Held Energy Systems Company For $120 Mln

(RTTNews) - NRG Yield, Inc. (NYLD), Tuesday said in its first third-party acquisition, it entered into an agreement to acquire the assets of privately held Energy Systems Company or ESC of Omaha, Neb., for $120 million cash. NRG Yield expects the transaction to close by the end of the year. The transaction is expected to increase Cash Available for Distribution by about $8 million in 2014, and is immediately accretive to 2014 Cash Flow Available for Distribution per share by approximately 8 percent.

This deal is in line with NRG Yield strategy of acquiring long-term contracted assets that positively complement its existing portfolio and offer long-term growth opportunities. This deal is also said to be an unique opportunity to achieve geographic diversification and grow thermal infrastructure platform. The company expects to fund the deal with cash on hand, and to acquire it debt-free.

ESC currently serves nearly 14 million square feet of data center, commercial, educational, hospital, cultural and governmental space in Omaha with a weighted average remaining life of customer contracts over 11 years.