Pacific Energy of Australia has secured an agreement to buy Contract Power Group, which has a value of $90 million. Pacific Energy, a power station and energy infrastructure company set out to purchase Contract Power, a remote power generation provider that specialises in the BOO market across Australia, Asia, and Africa.
The acquisition will allow Pacific Energy the opportunity to expand its presence in the BOO market. Contract Power is the leading BOO power company in the Australian gold mining sector, with 245 MW of capacity across 16 sites.
Pacific Energy will acquire the company through a $90 million transaction to be funded by $85 million in cash and $5 million in Pacific Energy shares.
James Cullen, Managing Director of Pacific Energy, said that the transaction would give the company significant scale and reach, with over 30 long-term power generation contracts for remote mines and townships.
Contract Power’s current projects include the building of a BOO power station in Pilganoora, Western Australia for Pilbara Minerals lithium-tantalum project. This is scheduled to be completed by the end of the quarter.