Kirkland & Ellis advises Constellation Energy on $26.6 billion acquisition of Calpine

Constellation is already the United States' leading producer of 24/7 emissions-free electricity; by adding Calpine's low-emission natural gas and renewable portfolio, the buyer expands its generation mix and national footprint.
The acquisition is a cash-and-stock transaction with an equity purchase price of about USD 16.4 billion, made up of 50 million Constellation shares and USD 4.5 billion in cash, plus the assumption of about USD 12.7 billion of Calpine net debt; after expected interim cash generation and tax attributes, the net purchase price is USD 26.6 billion.
The deal was signed as one of the largest ever in electricity generation and is intended to create the nation's largest clean energy provider and leading competitive retail electric supplier, serving 2.5 million customers with a broader product set.

Constellation is already the United States' leading producer of 24/7 emissions-free electricity; by adding Calpine's low-emission natural gas and renewable portfolio, the buyer expands its generation mix and national footprint.
The acquisition is a cash-and-stock transaction with an equity purchase price of about USD 16.4 billion, made up of 50 million Constellation shares and USD 4.5 billion in cash, plus the assumption of about USD 12.7 billion of Calpine net debt; after expected interim cash generation and tax attributes, the net purchase price is USD 26.6 billion.
The deal was signed as one of the largest ever in electricity generation and is intended to create the nation's largest clean energy provider and leading competitive retail electric supplier, serving 2.5 million customers with a broader product set.

Deal Overview