TransAlta to Acquire Two Fully-Contracted Gas Assets for $1 Billion, Funds Equity with $350M Share Offering
Summary
TransAlta announced a US$1.0 billion acquisition of two fully-contracted natural gas peaking facilities in Colorado, adding 318 MW of capacity. This strategic expansion is expected to generate US$80 million in annual Adjusted EBITDA and US$33 million in Free Cash Flow, providing immediate low-to-mid single-digit accretion to Free Cash Flow per Share. To fund the US$250 million equity component of the deal, the company launched a concurrent $350 million bought deal common share offering, which will result in dilution. The acquisition strengthens TransAlta's presence in the Western U.S. and is anticipated to close early in the fourth quarter of 2026.
At the time of this announcement, TAC was trading at $13.99 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $9.93 to $17.88. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.