Quantum Capital Group is expanding its portfolio by acquiring Cogentrix Energy LLC, an independent power producer based in Charlotte, North Carolina. This acquisition, valued at approximately $3 billion, is part of Quantum's ongoing strategy of acquisitions and divestments in the energy sector. The deal is expected to close between late 2024 and early 2025.
In August, Quantum announced its acquisition of Denver-based Caerus Oil and Gas for around $1.8 billion, which included the assumption of various liabilities. Additionally, in November, Quantum partnered with Kayne Anderson and FourPoint Resources to acquire Ovintiv Inc.’s assets in the Uinta Basin for $2 billion, with the transaction anticipated to finalize by the end of the first quarter of 2025.
The Cogentrix acquisition will enhance Quantum's portfolio with a 5.3-gigawatt collection of natural gas-fired power plants across the U.S., including significant facilities in Texas. Wil VanLoh, Quantum's CEO, emphasized the growing demand for reliable power infrastructure amid increasing electricity needs driven by data centers, AI, and manufacturing reshoring. He noted the challenges posed by the instability of the grid due to the rise of renewable energy sources and the decline of coal-fired generation.
The current management team at Cogentrix, led by CEO John Ragan, will remain in place following the acquisition, and all employees are expected to be retained. However, the exact number of Cogentrix employees has not been disclosed.
Over the past year, Quantum has engaged in transactions totaling approximately $4 billion in acquisitions while divesting around $9 billion in assets. Notably, Quantum and Comstock Resources formed a midstream partnership called Pinnacle Gas Services, which included a $300 million investment from Quantum.
Recent divestments include the $768 million sale of ConnectGen, a renewable energy platform based in Houston, to Spanish developer Repsol. ConnectGen's co-founder, David Berry, has since launched a new firm, Cloverleaf Infrastructure, which is also exploring power projects in the data center sector.
In terms of advisory roles, Guggenheim acted as the financial adviser for Quantum, while King & Spalding and Vinson & Elkins provided legal counsel. For Carlyle Group, Lazard served as the financial adviser, with Latham & Watkins offering legal advice.
Overall, Quantum Capital Group's strategic acquisitions and partnerships reflect its commitment to enhancing its energy portfolio and addressing the evolving demands of the power market.
