SAN JOSE, Calif., Dec. 19, 2000 (PRNewswire) Calpine Corporation (NYSE: CPN), the national independent power company, today announced that is has acquired Boca Raton, Fla.-based Power Systems Mfg. LLC (PSM), an industry leader in combustion turbine component engineering, design and manufacturing, for approximately $43 million $10.7 million in Calpine common stock, totaling approximately 280,000 shares, and $32.3 million in cash.
The majority of the cash payments will be made in five equal annual installments beginning in January 2002, and are contingent upon future PSM performance.
PSM’s expertise directly supports Calpine’s goal of being the low cost producer of electricity and provides Calpine with a competitive advantage in the North American power industry. PSM will operate as a subsidiary of Calpine and will continue to sell its products to the combustion turbine market.
Tom Mason, executive vice president – operations for Calpine, stated, “Over the next few years, Calpine will become the owner and operator of the world’s largest fleet of state-of-the-art natural gas-fired power plants. PSM will significantly strengthen Calpine’s ability to operate and maintain this fleet to maximize value. With this acquisition and our large backlog of gas turbine orders with Siemens Westinghouse and General Electric, Calpine continues to be well positioned to meet North America’s growing demand for electricity.”
PSM will be a key strategic component of Calpine’s turbine maintenance strategy and will help ensure continued reliable plant performance, while helping reduce Calpine’s overall operating costs. PSM employs 40 energy professionals with in-depth gas turbine experience. PSM specializes in the design and manufacturing of turbine hot section blades, vanes, combustors and low emissions combustion components.
“Consistent with Calpine’s fully integrated approach to power generation, PSM will add value to every phase of our power generation program from input on design and engineering, through start-up, operations and maintenance. PSM will provide us with new options with which we can ensure that Calpine provides our customers with the highest quality product at competitive rates,” continued Mason.
Thomas Churbuck, president of PSM, commented, “PSM’s capabilities are an excellent match for Calpine’s North American energy initiative. We look forward to building the PSM staff to become a vital part of Calpine’s long- range plans.”
Calpine has launched the largest power plant construction program in North America. To date, the company has 23 projects in construction, totaling 11,100 megawatts of base load capacity, with an additional 2,100 megawatts of peaking capacity. On the development front, Calpine has announced plans to bring on line an additional 11,600 megawatts of base load capacity and 2,000 megawatts of peaking capacity.
To power its aggressive energy initiative, Calpine has firm orders in place for 183 state-of-the-art gas turbines. When operating in a combined- cycle configuration, these turbines will generate more than 45,000 megawatts of electricity.
Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient combined-cycle, natural gas-fired generation and is the world’s largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America. To date, the company has approximately 27,600 megawatts of base load capacity and 5,300 megawatts of peaking capacity in operation, under construction and in announced development in 27 states and Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its website at www.calpine.com.