Vistra Corp. announced that it has executed a definitive agreement to acquire seven modern natural gas generation facilities, totaling approximately 2,600 MW of capacity, from Lotus Infrastructure Partners (“Lotus”). The acquisition includes five combined cycle gas turbine facilities and two combustion turbine facilities located across PJM, New England, New York, and California, further geographically diversifying Vistra’s natural gas fleet.
“We are excited to announce another opportunistic expansion of our generation footprint in some of our key competitive markets,” said Vistra President and CEO Jim Burke. “We believe natural gas fired generation will continue to play an ever-increasing role in the reliability, affordability, and flexibility of U.S. power grids for years to come. The addition of this attractive portfolio of combined cycle and peaking assets allows Vistra to serve growing power demand while exceeding our mid-teens levered return target.”
Burke concluded, “Importantly, as our experienced team has demonstrated previously with the acquisitions of Dynegy and Energy Harbor, successfully integrating fleets of generation assets is a core competency of our company. We look forward to closing the transaction and welcoming new team members to the Vistra family.”
“We are pleased to have reached an agreement to sell this gas plant portfolio to a proven operator like Vistra,” said Himanshu Saxena, Chairman and CEO of Lotus Infrastructure Partners. “The Lotus team has acquired, developed, and operated this portfolio of high-quality assets for many years, which has helped us deliver this win-win transaction for our investors.”
| Portfolio Overview | |||
| Asset | State | Size (MW) | Technology |
| Fairless | Pennsylvania | 1,320 | CCGT |
| Manchester | Rhode Island | 510 | CCGT |
| Garrison | Delaware | 309 | CCGT |
| Hazleton | Pennsylvania | 158 | CT |
| Beaver Falls | New York | 108 | CCGT |
| Syracuse | New York | 103 | CCGT |
| Greenleaf | California | 49 | CT |
| Total | 2,557 | ||
Vistra is acquiring these assets for $1.9 billion or approximately $743/kW, subject to certain net working capital adjustments. The acquisition is expected to deliver immediate benefits to Vistra shareholders, including Ongoing Operations AFCFbG1 per share accretion. Vistra expects to fund the transaction with the assumption of an existing term loan from Lotus and cash on hand. Although the principal amount of the term loan to be assumed is subject to change, it is currently expected to be approximately 50% of the consideration at closing. The purchase price implies a multiple of approximately 7x 2026 Adjusted EBITDA, excluding any potential synergies.
Conditions and Timing
The transaction is subject to certain regulatory approvals, including the Federal Energy Regulatory Commission and the Department of Justice under the Hart-Scott-Rodino Act, and is expected to close sometime in late 2025 or early 2026.
Advisors
Barclays and Moelis & Company LLC are serving as financial advisors, and Latham & Watkins LLP and Cleary Gottlieb Steen & Hamilton LLP are serving as legal advisors, to Vistra.
Lazard is serving as exclusive financial advisor, and King & Spalding LLP and Eversheds Sutherland are serving as legal advisors, to Lotus Infrastructure Partners.
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