Global power generation firm InterGen announced the sale of its assets in Mexico including gas turbine and wind projects to U.K private equity firm Actis for US$1.3b. The transaction is expected to close in the second quarter of 2018.

(Business Wire) InterGen announced today that it has entered into an agreement with Actis to sell its business interests in Mexico for an enterprise value of US$1.256 billion. The sale is expected to close in the second quarter of 2018 and is subject to regulatory approvals.

InterGen’s Mexico portfolio includes 2,200 megawatts in operation with six combined-cycle gas turbine projects and a 155 megawatt wind project with partner IEnova. InterGen also owns and operates three gas compression stations and one 65-km gas pipeline in Mexico.

For more than 20 years, InterGen has been a leading investor and operator in Mexico helping to meet the growing energy needs in the country through the cleanest and most advanced technology and processes.

“We are pleased to have reached this agreement with Actis, a recognized investor in the energy and infrastructure space in Latin America, including Mexico,” said Tim Menzie, InterGen chief executive officer. “While we are committed to growing our portfolio over the long term, this transaction represents a significant opportunity to realize value from our investment in the region.”

Commenting on the investment, Michael Harrington, partner in the energy business at growth markets investor Actis, said, “This is a landmark transaction that further cements our commitment to the compelling opportunity we see in Latin America and Mexico in particular. We are delighted to invest behind the successful business that InterGen has created and continuing to build it into a leading platform in the region. This is an important building block that underpins Actis’ focused strategy of creating scalable energy businesses in key growth markets.”

BofA Merrill Lynch and Barclays Capital acted as exclusive financial advisors to InterGen and Scotia Capital acted as exclusive financial advisor to Actis in the transaction.