BAYONNE AND BEYOND – Macquarie Infrastructure Company has announced that it has entered into an agreement to acquire the Bayonne Energy Center, Business Wire reported.
Macquarie will purchase the BEC from an affiliate of ArcLight Capital Partners LLC for approximately $210 million in cash plus the assumption of approximately $510 million of debt (maturing in 2021).
The transaction is subject to customary regulatory approvals and is expected to be completed during the first half of this year.
James Hooke, MIC chief executive officer, said the purchase would help the company “diversify and strengthen.”
MIC is the owner of International-Matex Tank Terminals, a storage facility for oil products and chemicals.
The BEC includes the 512-megawatt, gas-fired power generation facility located adjacent to IMTT and a seven-mile long transmission cable running beneath the Hudson River connecting the plant to Consolidated Edison in New York.
“Given its proximity to IMTT-Bayonne, we are familiar with BEC,” Hooke said. “It is an exceptional business.”
The power produced by BEC is used to meet electricity demand in the New York City market.
It is more efficient than many of the other power plants in the New York City power market, according to the company, where the average generating facility is more than 20 years old.
MIC owns and operates a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of IMTT, Atlantic Aviation, an airport services business, and a gas processing and distribution business. IMTT is the largest single division within Macquarie.
Macquarie Infrastructure is part of Australia’s Macquarie Group Ltd.
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