NRG Energy to sell nine subsidiaries to LS Power for $4.00 billion

NRG Energy agreed to sell nine subsidiaries to Orbit Acquisition Holdco, LLC, an affiliate of LS Power Equity Advisors, for $4.00 billion in cash, subject to net working capital and other adjustments in the purchase agreement.

Shares were little changed premarket at 7:02 a.m. ET.

The buyer will acquire all issued and outstanding equity interests in Linebacker Power Funding, Jack County Power Development, Ravenswood Operations, Ravenswood Services, Ravenswood Holdings, Ravenswood Unit 40, Ocean State Power, Wallingford Energy and Rise Development, with their direct and indirect subsidiaries.

Closing is expected in 2027, subject to no blocking law or order, expiration of the Hart-Scott-Rodino waiting period, and approvals from the Federal Energy Regulatory Commission and the New York State Public Service Commission. There is no financing condition.

The buyer must pursue required governmental approvals promptly and before May 9, 2027, a date that can be extended under the agreement. The end date may automatically extend for up to two successive 90-day periods in certain cases.

The buyer will pay NRG a $200 million termination fee in specified cases, including certain buyer breaches, such as failure to pursue required regulatory remedies, and failure to close when required.

NRG will operate the businesses in the ordinary course until closing, within limits in the agreement.

At closing, the parties will enter into a transition services agreement and other commercial agreements covering power and fuel management, natural gas supply and transportation capacity management between the acquired companies and an NRG subsidiary.