Toronto: Ontario Power Generation announced June 25 that it had entered into an agreement to acquire Cube Hydro through its U.S. hydroelectric platform. Cube Hydro is an operator of small and medium-sized hydropower facilities based in the northeast and southeast United States.
The acquisition provides additional scale to OPG's existing U.S. hydro platform and is expected to generate meaningful operational synergies between the two platforms, including enhanced opportunities for further capital deployment.
OPG says the investment will be financed primarily through OPG's corporate public debt program or other available credit facilities. Goldman Sachs & Co. LLC acted as a financial advisor to OPG on the acquisition. The transaction is subject to standard regulatory approvals. Once the acquisition is finalized, Cube Hydro will operate as part of OPG's U.S. hydroelectric platform.
Established in 2014, Cube Hydro operates 19 hydropower facilities, providing 385 MW of in-service capacity. Facilities are located in New York, Pennsylvania, Virginia, West Virginia and North Carolina.