In a deal between private equity firms, Quantum Capital Group plans to buy independent power producer Cogentrix Energy from Carlyle for about $3 billion, the companies said Monday.
Cogentrix owns 5.3 GW of gas-fired power plants in the PJM Interconnection, the Electric Reliability Council of Texas and ISO New England markets.
“We are at a critical juncture in the evolution of the domestic power market. Electricity demand is rapidly increasing thanks to explosive growth in data centers and AI, the reshoring of manufacturing, and the electrification-of-everything,” Wil VanLoh, CEO of Houston-based Quantum, said. “This growth is occurring at the same time our grid is becoming more unstable with additions of intermittent renewable power and continued retirements of coal-fired generation.”
Quantum plans to “meaningfully grow” Cogentrix with a focus on gas-fired power generation, renewables and battery storage, said Michael MacDougall, a Quantum partner.
Quantum — through Quantum Energy Partners — invests in oil and gas companies as well renewable energy businesses.
The companies expect to close the deal late this year or in the first quarter in 2025. Charlotte, North Carolina-based Cogentrix will continue to be led by CEO John Ragan and its existing management team after the deal closes, Quantum and Carlyle said.
