Quantum Capital To Buy Cogentrix From Carlyle In $3 Bln Deal

(RTTNews) - Quantum Capital Group, a provider of private equity, credit, and venture capital, announced Monday its agreement to acquire Cogentrix Energy from funds managed by investment firm Carlyle Group Inc. (CG) for a total consideration of around $3 billion.

The deal is expected to close between the fourth quarter of 2024 and the first quarter of 2025, subject to customary regulatory approvals. Following the deal closure, the company will continue to be led by current CEO John Ragan and the existing Cogentrix management team.

Charlotte, North Carolina -based Cogentrix's platform consists of 11 natural gas-fired power plants, comprising 5.3 gigawatts of efficient and flexible capacity across key U.S. markets.

Wil VanLoh, Founder and CEO of Quantum, said, "We are at a critical juncture in the evolution of the domestic power market. Electricity demand is rapidly increasing thanks to explosive growth in data centers and AI, the reshoring of manufacturing, and the electrification-of-everything. This growth is occurring at the same time our grid is becoming more unstable with additions of intermittent renewable power and continued retirements of coal-fired generation. Now more than ever, we need reliable and efficient power infrastructure. This is what the Cogentrix assets provide."

Michael MacDougall, Partner at Quantum, added that the company expects to meaningfully grow the Cogentrix platform, with a focus on gas-fired power generation, renewables, and battery storage, with a view to delivering clean, reliable, and affordable power.

In the deal, Guggenheim served as Quantum's financial advisor and Lazard served as Carlyle's financial advisor.