(12 July 2022, USA) – OMERS Infrastructure has today announced the signing of an agreement to sell OMERS interest in MCV Holding Company, which owns Midland Cogeneration Venture (MCV), to a consortium of Capital Power Corporation and Manulife Investment Management. OMERS initially acquired a 100% interest in MCV in 2012 and subsequently syndicated a minority interest to third-party investors in the Global Strategic Investment Alliance (GSIA) investment program in 2013.
MCV is the largest natural gas-fired cogeneration facility in the United States. Located in Midland, Michigan, MCV reliably and safely supplies electric energy and capacity to Consumers Energy, and also supplies electricity and steam to Corteva Agriscience and Dow Silicones, two of the world’s leading materials science and agriscience companies that operate large-scale facilities adjacent to MCV.
Gisele Everett, Senior Managing Director and Head of Americas, OMERS Infrastructure, said: “MCV plays an important role in supporting the local economy and Michigan’s broader manufacturing sector. We have been proud of the work done in partnership with the MCV management team and think this represents a strong example of our active asset management approach in action. We wish MCV’s staff, management and new investors well, as MCV enters the next phase of its development.”
Tom Frazier, Managing Director, OMERS Infrastructure said: “We think MCV’s importance to Michigan’s power supply will increase as the substantial remaining coal-fired generation continues to be retired. We are proud of the transformation MCV has achieved, including the successful completion of multiple programs that improved operational efficiency and enhanced customer confidence in its energy offering, leading to the extension of key contracts which we believe positions MCV well for many years to come.”
Barclays is serving as exclusive financial advisor and Torys LLP is serving as legal counsel to OMERS Infrastructure. The closing of the transaction is expected in H2 2022, subject to customary closing conditions, including regulatory approvals.
OMERS Infrastructure contact
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About OMERS Infrastructure
OMERS Infrastructure manages investments globally in infrastructure on behalf of OMERS, a defined benefit pension plan for municipal employees in the Province of Ontario, Canada, and third-party investors through its Strategic Partnership Program. OMERS Infrastructure currently has approximately C$32 billion in assets under management and over 30 investments, principally in North America, Europe and Asia-Pacific and across sectors including energy, digital services, transportation and government-regulated services. OMERS Infrastructure has employees in Toronto, New York, the U.K., Continental Europe (including Amsterdam, NL), Asia and Australia. More information: www.omersinfrastructure.com.