Irving-based Vistra Corp. has announced a significant acquisition, agreeing to purchase Cogentrix Energy for approximately $4 billion. This transaction includes ten natural gas generation facilities with a total capacity of about 5,500 megawatts, marking a strategic expansion of Vistra’s energy portfolio.
Cogentrix Energy is indirectly owned by funds managed by Quantum Capital Group. The acquisition encompasses three combined cycle gas turbine facilities and two combustion turbine facilities located in Pennsylvania, New Jersey, and Maryland, alongside four additional combined cycle gas turbine facilities in New England, and one cogeneration facility in Texas under the Electric Reliability Council of Texas (ERCOT).
In a statement, Jim Burke, President and CEO of Vistra, expressed enthusiasm about the acquisition, describing it as a crucial step to support the increasing energy demands in Vistra’s primary markets. “Successfully integrating and operating generation assets is a major undertaking, and our talented team continues to demonstrate that it is a core competency of our company,” Burke noted.
This acquisition follows Vistra’s $1.9 billion purchase of seven gas-fired power plants from Lotus Infrastructure Partners in May 2025, indicating a pattern of opportunistic growth within the company.
Financial Details of the Acquisition
The net purchase price of $4 billion includes approximately $2.3 billion in cash and around $900 million in Vistra stock, translating to 5 million shares at a mutually agreed value of $185 per share. Additionally, the deal entails the assumption of about $1.5 billion in outstanding debt from Cogentrix, offset by an expected $700 million in tax benefits resulting from the transaction.
Vistra indicated that the net purchase price represents a multiple of approximately 7.25 times the expected Adjusted EBITDA for 2027, equating to about $730 per kilowatt for the portfolio.
Burke emphasized the importance of a diversified fleet, stating, “Our diversified fleet, anchored on natural gas and nuclear generation, will play a critical role in the reliability, affordability, and flexibility of U.S. power grids.” He added that the acquisition of Cogentrix’s natural gas portfolio is a strong foundation for continued growth at Vistra.
Expanding Geographic Footprint
The addition of Cogentrix’s assets significantly enhances Vistra’s generation capabilities, providing a more robust base-load capacity. The acquisition allows Vistra to diversify and expand its geographic footprint across some of North America’s most attractive and rapidly growing power regions.
Wil VanLoh, founder and CEO of Quantum Capital Group, expressed satisfaction with the deal, stating, “We’re pleased to have reached an agreement to sell substantially all of the Cogentrix portfolio to Vistra. We’re excited to become shareholders of Vistra and have much confidence in Vistra’s ability to deliver long-term value through its industry-leading portfolio and operational excellence.”
Following the acquisition, Vistra’s overall generation portfolio will consist of approximately 50,000 megawatts of capacity, stretching across the United States from Maine to California.
The transaction is subject to regulatory approvals, including assessments by the Federal Energy Regulatory Commission and the Department of Justice under the Hart-Scott-Rodino Act, along with various state regulatory approvals. Closing of the deal is anticipated in mid- to late 2026.
In this endeavor, Goldman Sachs & Co. LLC is acting as the exclusive financial advisor, while Latham & Watkins LLP, Sidley Austin LLP, and Cleary Gottlieb Steen & Hamilton LLP are providing legal counsel to Vistra.
As Vistra embarks on this new chapter, the company remains focused on identifying opportunities that align with its goals for meeting growing customer demand while adhering to disciplined investment strategies.
