Hydro One to buy Great Lakes Power’s transmission business for $222M
Deal will boost company's share of Ontario's transmission capacity to 98 per cent following its controversial initial public offering last November
TORONTO—Hydro One Ltd. is making a major electrical transmission play in Northern Ontario.
The company, which went public in one of the largest initial public offerings in Canadian history last November, has announced it will buy Great Lakes Power Transmission LP from Brookfield Infrastructure for $222 million in cash. Including the assumption of approximately $151 million of Great Lakes’ debt, the deal is valued at $373 million.
“Following Hydro One’s successful IPO and the recent acquisition of three Local Distribution Companies, this transaction is further testament to the people and potential of Hydro One”, Mayo Schmidt, the company’s president and CEO, said.
“Our intense focus on customers and communities together with our disciplined approach to leveraging strategic opportunities is an important combination as we move forward with the transformation of this company,” he added.
Great Lakes Power operates an electrical transmission business along the eastern shore of Lake Superior around Sault Ste. Marie, Ont. Hydro One noted it has a rate base of approximately $219 million and consists of 15 transmission stations as well as 560 kilometers of high and medium voltage transmission lines. The company has infrastructure covering an area of 12,000 square kilometers, its network connecting to Hydro One’s Wawa and Mississagi transmission stations.
The deal must clear customary closing hurdles before being completed, including gaining the approval of the Ontario Energy Board.
If approved, the agreement will give Hydro One control over approximately 98 per cent of Ontario’s transmission capacity.