ContourGlobal said it had agreed to acquire Alpek's portfolio of two natural gas-fired combined heat and power plants in Mexico, and the development rights and permits for a third plant, for $724m in cash.
An additional payment at closing estimated at $77m represented the value added tax assessed for the transaction and was expected to be refunded in full within 12 months of closing, ContourGlobal said.
The two plants to be acquired would provide electricity and steam under long-term contracts to subsidiaries of Alfa Group, a Mexican industrial conglomerate, and other commercial and industrial customers.
The plants, located on sites adjacent to, and interconnected with Alpek's industrial facilities, had a gross installed capacity of 518 megawatts. The third adjacent plant had a planned capacity of 414 megawatts.