Princeton-based energy company NRG Energy Inc. announced today it will acquire Edison Mission Energy, of Santa Ana, Calif., in a $2.63 billion deal.
The acquisition is part of Edison Mission's Chapter 11 reorganization plan. The company filed for bankruptcy Dec. 17; since then, it said, all its facilities have maintained normal operations.
The aggregate purchase price, subject to certain post-closing adjustments, consists of approximately 12.7 million shares of NRG common stock, valued at $350 million, with the balance to be paid in cash on hand.
In connection with the transaction, NRG also will assume non-recourse debt of approximately $1.54 billion. The company said in a statement NRG and its affiliates will become the third-largest U.S.-based renewable energy generator in the nation, with more than 2,900 net MW of wind and solar capacity in operation or under construction.
This transaction will almost quadruple NRG's existing wind generation capacity with the addition of 1,700 net MW.
EME said it intends to file a motion today to seek approval of the plan sponsor agreement with the U.S. Bankruptcy Court for the Northern District of Illinois.
NRG expects to close the transaction in the first quarter of 2014.