Hull Street-backed Milepost Power buys 446-MWs of gas-fired plants from Maxim Power for $106 million

Written By: Stratton Report
April 13, 2017

On April 13, Hull Street Energy, LLC announced that its affiliate, Milepost Power Holdings, had completed the acquisition of Maxim Power (USA) Inc. from Maxim Power Corp. According to Hull Street, the purchase price for five natural gas-fired electric generation facilities with a total capacity of 446-MWs was approximately $106 million.

Hull Street Energy, a private equity firm that invests in power generation assets and related businesses, stressed that it established Milepost to build a significant presence in the North American middle market power sector.

Sarah Wright, Managing Partner of Hull Street Energy observed:

The formation of Milepost and its acquisition of the Maxim Power (USA) assets reflect our strategic focus on the investment opportunity created by the ongoing transition to more sustainable sources of electric power. As the North American power market becomes increasingly fragmented and decentralized, we are actively pursuing opportunities to acquire middle market power businesses and to enhance their value through asset optimization, customer base expansion and improved management. We believe the industry expertise, analytical capabilities and operational strength of our team will enable Hull Street Energy and Milepost to identify middle market assets and businesses that are positioned to thrive as the power generation sector continues its evolution.

Mark Orman, a Partner at Hull Street Energy who is serving as Interim CEO of Milepost Power. Remarked: “Due to its advantageous access to fuel and its location, the Milepost asset fleet provides critical reliability service to the power grid in New England. The fleet should be well-positioned as the New England region moves to integrate more intermittent renewable resources such as solar, wind and hydro into its supply mix.”

Manatt, Phelps & Phillips and Greenberg Traurig acted as legal counsel to Hull Street Energy on the transaction, and Eaton Partners is currently serving as placement agent for the firm.