U.S. private equity firm Conduit Capital Partners announced that it has agreed to sell its stake in Electricidad del Golfo, a 35 megawatt (MW) hydroelectric power plant in the state of Veracruz, Mexico, to Canadian company ATCO. The transaction is expected to close in the first quarter of 2018.

(Press Release) Conduit Capital Partners LLC (“Conduit”), a private equity investment firm focused on the independent electric power and energy industry in Latin America and the Caribbean, today announced that it has agreed to sell its interest in Electricidad del Golfo, a 35 megawatt (MW) hydroelectric power plant in the state of Veracruz, Mexico, to ATCO, a diversified global corporation based in Canada, for a total consideration of approximately US$90 million (including the assumption of approximately US$26 million of net financial debt). Conduit owns an interest in Electricidad del Golfo through its fund, Latin Power III. The proposed transaction is subject to customary conditions and is anticipated to close in the first quarter of 2018.

This was a highly successful development project and exit for our investors. Attracting a strategic energy group like ATCO underscores the effectiveness of Conduit’s strategy as well as the firm’s expertise in identifying, building and bringing projects to realization.”

Electricidad del Golfo is one of the largest hydroelectric power plants operating under the self-supply regime in Mexico and is fully contracted with high quality offtakers. The plant includes a small reservoir for the regulation and optimization of the Apatlahuaya River flows. Conduit began building the state-of-the-art plant in 2011, and it has been continually operating at high output and safety standards since 2014.

George Osorio, Conduit’s Managing Partner, stated, “This was a highly successful development project and exit for our investors. Attracting a strategic energy group like ATCO underscores the effectiveness of Conduit’s strategy as well as the firm’s expertise in identifying, building and bringing projects to realization.”

Conduit is also planning to begin the sale process for its 22 MW wind power plant in Monterrey, Mexico in 2018, Osorio added.

BNP Paribas acted as exclusive financial advisor to Conduit on the sale.