Charlotte’s Cogentrix Energy, an independent power producer, is being sold to a Houston-based private equity firm focused on energy for $3 billion.
Founded in 1983, Cogentrix produces 5.3 gigawatts of energy from 11 natural gas-fired power plants across the country.
The seller is Carlyle, a private equity group that had acquired Cogentrix in 2012 from Goldman Sachs for an undisclosed amount. At the time, Cogentrix was producing 5,000 megawatts. The buyer is Quantum Capital Group.
“We are grateful for Carlyle’s partnership, which has provided us with the tools and capabilities to capture a growing opportunity set within the U.S. power market,” said Cogentrix CEO John Ragan in a statement. “As we look to the future, we are confident Quantum’s deep knowledge of the energy markets, successful track record of business building, and risk management capabilities will drive significant long-term value for our customers, employees, investors, and other stakeholders.”
After the deal closes, Cogentrix will continue to be led by Ragan and the existing Cogentrix management team.
Ragan joined Cogentrix in 2017. He previously worked at NRG, where he held several positions overseeing diverse regional fleets of power plants, commercial activities and NRG’s carbon capture business. He also served as NRG’s chief operating officer and president of NRG’s Northeast and Gulf Coast regions.
Ragan left NRG in 2016 to join NextEra Energy, where he held a senior leadership position overseeing NextEra’s U.S.-based oil and gas operations and midstream natural gas pipeline activities.
Cogentrix acquired two Texas gas plants in 2021 and two Pennsylvania gas plants in 2020.
In North Carolina, it previously owned coal plants in Roxboro, Portsmouth, Rocky Mount, Southport, Kenansville, Elizabethtown and Lumberton.
“We are at a critical juncture in the evolution of the domestic power market,” said Wil VanLoh, Quantum’s CEO, in a statement. “Electricity demand is rapidly increasing thanks to explosive growth in data centers and AI, the reshoring of manufacturing, and the electrification-of-everything.”
The deal is expected to close by the end of the year or in early 2025.