Divestitures and privatizations have become increasingly popular over the past few decades as non-traditional sellers (e.g., utilities, governmental authorities) attempt to raise capital and/or comply with new regulatory schemes and buyers seize the opportunities associated with those assets or businesses. In some instances (e.g., distressed single-purpose entities), the transactions are relatively straightforward. In others, the uniqueness of the investment introduces complexity. Carmody & Torrance has been active in those markets, playing a variety of roles in many public and private energy-related divestitures and privatizations.
We draw upon our interdisciplinary training to strengthen the transaction team. For sellers, we have not only served traditional roles such as due diligence, data room organization and management, regulatory review and document preparation and negotiation, but we also have provided strategic and business advice regarding the structure and approach that will facilitate a successful sale. Our representation of bidders and acquirers involves similar legal and business skills and often expands into the regulatory and economic environment that will affect the long-term viability of an investment. In all instances, our broad experience in the energy industry allows us to provide practical insight designed to achieve the client's objectives.
Representative transactions include:
- As project manager in the divestiture of a utility's retail competitive business, verified the divestiture strategy for consideration by the board, assembled and managed the divestiture team (internal and external), led a comprehensive auction process, and structured, negotiated and consummated a transaction having a value in excess of $100 million.
- Participated, in a variety of roles, in numerous sales and acquisitions (total transaction values in excess of $1 billion) of generating assets, supply/entitlement contracts and an electric distribution system.
- Managed the auction process of a merchant generation company, including the preparation of the request for indicative bids and the offering memorandum, the assembly and management of multiple data rooms and the consummation of six separate sales (including the dismantling and exportation of a gas-fired plant).
- Worked with a Connecticut municipality in the privatization of its wastewater treatment facility including the structuring of the concession arrangement, the selection of financial and other advisors and the restructuring of labor relations.
- Represented bidders seeking to acquire domestic and international privatized assets including generating assets, an electric distribution system and treatment plants.