ArcLight Capital and Olympus Power have entered into a definitive agreement to sell Cadillac Renewable Energy to Atlantic Power (TSX: CA:ATP) for $77 million. Cadillac is a 38 MW electric power facility designed to use recycle wood waste as its primary fuel source. ArcLight acquired the company with Delta Power in April 2006. Later that the same year, Delta Power sold its stake to Olympus Power.
Since the beginning of 2009, PE investors have exited 36 Energy-related companies, and two more exits are announced but still in play, according to the PitchBook Platform. Exit activity in the industry has surged this year. So far in 2010, there have been 25 completed exits, compared to only 11 for all of 2009. Additionally, these exits have also typically involved larger sums of money than last year's, with the median deal size jumping from $253.3 million in 2009 to $418.5 million in 2010 YTD. The four largest exits since the beginning of 2009 have also all been from this year, including the $2.16 billion sale of Frontier Drilling to Noble (NYSE: NE) in July, which represented an exit for Riverstone Holdings, The Carlyle Group, DLJ Merchant Banking Partners and Avista Capital Partners.