Hydro Ottawa has signed a purchase and sale agreement (PSA) for three hydroelectric plants from Domtar and has also acquired a 38.3% interest in the Ring Dam at Chaudière Falls for a cost of $45m.
The three plants located at the Chaudière site in Ottawa, Ontario is expected to double the present generating capacity of clean energy and also produce sufficient electricity to light up 28,000 homes.
Hydro Ottawa chairman of the board Pierre Richard said the company already own and operate three other hydroelectric plants at the Chaudière site.
"This acquisition increases our generating capacity at Chaudière from 17 megawatts to 38 megawatts of clean electricity, enough to power 28,000 homes every year," Richard added.
Hydro Ottawa director of board Mayor Watson said, "pleased with Hydro Ottawa’s strategic acquisitions which will more than double our clean, green energy production and contribute to the City’s sustainable and economic bottom lines."
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By GlobalDataThe company signed the acquisition deal as a part of its strategic growth plan and to accomplish opportunities that can provide clean, green, and reliable electricity supply and to provide long term returns to the city of Ottawa, its shareholder.
Hydro Ottawa conducted thorough investigations and conducted due diligence before signing the PSA.
The deal is expected to close by 31 August, 2012.
The company has retained BMO Capital Markets as its exclusive financial advisor for the transaction.
Canada based Hydro Ottawa is an electricity distribution company.
