Founded in 2014, GridLiance operates 1,126km of high-voltage transmission lines in the US
Goldman Sachs served as financial advisor to GridLiance in the transaction. (Credit: Pixabay/Sebastián Faune.)
NextEra Energy Transmission, a subsidiary of NextEra Energy has entered into an agreement to acquire GridLiance Holdco and GridLiance, from Blackstone Energy Partners for $660m.
The transaction value also includes the assumption of debt.
NextEra Energy said that it will use some of the proceeds from its recent equity raise to finance the deal.
Established by affiliates of Blackstone Energy Partners in 2014, GridLiance owns nearly 700 miles (1,126km) of high-voltage transmission lines and related substation infrastructure with utility rates set by the Federal Energy Regulatory Commission (FERC).
NextEra Energy chairman and CEO Jim Robo said: “GridLiance partners with electric cooperatives and public power utilities to enhance transmission system reliability and is well positioned to benefit from the substantial expected renewables growth over the coming years.
“This acquisition furthers our goal of creating America’s leading competitive transmission company and is consistent with our strategy of adding high-quality regulated assets to our portfolio.”
GridLiance operates transmission lines across six US states
The Dallas-based GridLiance operates transmission lines across Illinois, Kansas, Kentucky, Missouri, Nevada and Oklahoma.
The company has presence in the California Independent System Operator (CAISO), Southwest Power Pool (SPP) and Midcontinent Independent System Operator (MISO) regions.
The deal required approvals from the FERC, utility commissions in Kansas, Missouri and Oklahoma. It is expected to closed next year.
Goldman Sachs served as financial advisor to GridLiance in the transaction.
GridLiance president and CEO Calvin Crowder said: “We are very excited to be joining NextEra Energy Transmission at a pivotal time in the company’s development. Our unique capabilities, proven track record, and tremendous growth prospects, coupled with NextEra’s experience as a leading transmission owner, make this a great fit for both companies.
“We are also grateful for the support of Blackstone in founding GridLiance and for working closely with management over several years to build the company into a leading business focused on improving transmission system reliability and partnering with public power entities.”