CALGARY, Alberta, November 17, 2025 (GLOBE NEWSWIRE) —
Highlights
- The purchase price is US$95 million, or approximately US$306 per kilowatt (kW).
- Free cash flow and post-closing cash yield improved immediately, with approximately 68% of the portfolio's gross margins declining through 2031; attractive fundamental conditions for recovery in the long term
- TransAlta's energy marketing and trading team will ensure sales growth and synergy
- Complements and further diversifies TransAlta's contract portfolio and strengthens its competitive position in our core Ontario market, increasing our capacity by 310 megawatts (MW) to 1,300 MW.
TransAlta Corporation (TransAlta or the Company) (TSX: TA; NYSE: TAC) is pleased to announce that it has entered into a definitive share purchase agreement (the Agreement) with an affiliate of Hut 8 Corp. and Macquarie Equipment Finance Ltd., shareholders of Far North Power Corporation (Far North), under which TransAlta will acquire Far North and all of its business operations in Ontario. Far North owns and operates generating assets consisting of four gas generating facilities with a total capacity of 310 MW. The acquisition price is US$95 million, subject to working capital and other adjustments. The company will finance the transaction using cash and borrowings.
“With this acquisition, our position in Ontario will be strengthened by contracted and complementary assets. As electrification and population growth continue, the market will rely heavily on existing reliable, dispatchable generation to ensure grid reliability. Upon contract expiration, these assets are in an attractive position for re-contract opportunities, as well as with options given the 167 acres of co-located land. The transaction will add to our robust and increasingly diversified portfolio as we see long-term value in these assets,” said John Kusinioris, President and CEO of TransAlta.
“This acquisition immediately enhances cash flow and demonstrates progress in achieving our priority of pursuing strategic mergers and acquisitions,” said Joel Hunter, executive vice president of finance and chief financial officer. “We look forward to seamlessly integrating these assets while remaining focused on growing our Alberta data center and Centralia capabilities.”
These assets are expected to add approximately $30 million to average adjusted EBITDA.1 per year at the 120 MW Iroquois Falls, 110 MW Kingston, 40 MW North Bay and 40 MW Kapuskasing facilities. The agreement is subject to customary closing conditions, including receipt of regulatory approvals. The transaction is expected to be completed by the beginning of the first quarter of 2026.
1 Adjusted EBITDA is not a measure required by IFRS. It does not have any standardized meaning under IFRS and therefore cannot be compared with similar measures presented by other organizations. Adjusted EBITDA is calculated by adjusting pre-tax earnings for certain items that may not reflect the current performance of the business. Average Adjusted EBITDA is based on expected cumulative Adjusted EBITDA for the period 2027 to 2031 divided by the number of years in such period. Please refer to the “Non-IFRS and Supplemental Financial Measures” section of our management's Discussion and Analysis for the three and nine months ended September 30, 2025 (the “MD&A”) for additional information about the non-IFRS measures we use, including a reconciliation of Adjusted EBITDA to earnings before income taxes, the most directly comparable IFRS measure, which section of the MD&A is incorporated herein by reference. The MD&A can be found on SEDAR+ (www.sedarplus.ca) under TransAlta's profile.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of power generation assets in Canada, the United States and Australia, with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large enterprises, businesses and utilities with affordable, energy efficient and reliable electricity. Today, TransAlta is one of the largest producers of wind and thermal energy in Canada, as well as Alberta's largest hydroelectric power plant. For more than 114 years, TransAlta has been a responsible operator and proud member of the communities in which we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future Business Indicator, which also defines sustainable business goals. Our reporting on climate change management is based on International Financial Reporting Standards (IFRS) S2, Standard on Climate-related Disclosures, as well as the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). TransAlta has achieved a 70 percent reduction in greenhouse gas emissions, or 22.7 million tons of CO2e, since 2015 and received an upgraded MSCI ESG AA rating.
For more information about TransAlta, visit our website at: transalta.com.
Cautionary Statement Regarding Forward-Looking Information
This press release includes “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements” herein). Forward-looking statements are not facts, but rather predictions, and can generally be identified by the use of statements that include phrases such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “intend,” “plan,” “forecast,” “continue” or other similar words. In particular, this press release contains forward-looking statements regarding, among other things: the acquisition of Far North Power Corporation; the expected benefits of such an acquisition, including adding approximately $30 million to average adjusted EBITDA per year, that the acquisition will be immediately accretive to free cash flow and cash profitability upon closing, that the assets are attractively positioned for re-contracting opportunities and that we expect our energy marketing and trading team to deliver commercial growth potential and synergies.
The forward-looking statements and forward-looking financial information in this press release are intended to provide the reader with information about management's current expectations and plans, and readers are cautioned that such information may not be suitable for other purposes. Forward-looking statements are subject to significant risks and uncertainties and are based on certain key assumptions. All forward-looking statements reflect TransAlta's beliefs and assumptions based on information available at the time the statements are made and, as such, are not guarantees of future performance. Because actual results may differ materially from forward-looking statements, you should not place undue reliance on forward-looking statements and should not use forward-looking information or financial forecasts for anything other than their intended purpose. We do not update our forward-looking statements as a result of new information or future events, except as required by law. For additional information about the assumptions made, as well as the risks and uncertainties that could cause actual results to differ from those expected, please see our most recent MD&A and Integrated Report for 2024, including the “Governance and Risk Management” section in our MD&A for the year ended December 31, 2024, filed under TransAlta's profile on SEDAR+ at www.sedarplus.ca and with the Commission. US Securities and Exchange Commission at www.sec.gov.
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