Cleco announces sale of Cleco Cajun assets
Today, Cleco Corporate Holdings LLC (“Cleco”) announced that certain of its
direct and indirect subsidiaries have entered into a Purchase and Sale Agreement
with certain affiliates of Atlas Capital Resources IV LP (“Atlas”) to sell
their unregulated electric utility business, owned and operated by Cleco's wholly
owned subsidiary Cleco Cajun LLC (“Cleco Cajun”), for the aggregate purchase
price of $600.0 million, subject to certain customary adjustments and payment
Cleco Cajun, a direct subsidiary
of Cleco, is an unregulated electric utility business that owns 14 generating
units with a rated capacity of 3,379 megawatts and wholesale contracts serving nine
Louisiana-based electric cooperatives.
Under the terms of the
agreement, the sale will include, without limitation, all of Cleco Cajun's generating
assets and wholesale cooperative contracts.
The transaction is expected to close by the second quarter of 2024 and is subject to various customary closing conditions, approvals and consents, including approvals from the Federal Energy Regulatory Commission, the Federal Communication Commission, and an antitrust review under the Hart-Scott-Rodino Act.
Corporate Holdings LLC is a regional energy holding company that conducts its
business operations through its subsidiaries, Cleco Power LLC and Cleco Cajun
LLC. Cleco Power is a regulated electric public utility company that owns nine
generating units with a rated capacity of 3,035 MWs and serves approximately
293,000 customers in Louisiana through its retail business and supplies
wholesale power in Louisiana and Mississippi.
Cleco Cajun is an unregulated utility company that owns 14 generating
units with a rated capacity of 3,379 MWs, and wholesale contracts serving
electric cooperatives, municipalities, an electric utility and a nonprofit
corporation. For more information about
Cleco, visit www.cleco.com.
Headquartered in Greenwich,
Connecticut and founded in 2002, Atlas and its affiliates own and operate 27
companies, which employ more than 50,000 associates across 300 facilities
worldwide. Atlas operates in sectors such as automotive, building materials,
capital equipment, construction services, food manufacturing and distribution,
metals processing, packaging, paper, power generation, printing, pulp, supply
chain management and wood products. Atlas’ companies together generate
approximately $16 billion in revenues annually.