TransAlta Agrees To Acquire Far North And Its Entire Business Operations In Ontario For $95M; Transaction Expected To Close By Early Q1 2026

Author: Benzinga Newsdesk | November 17, 2025 06:37am

• Purchase price of $95 million, or approximately $306 per kilowatt (kW)
• Immediately accretive to free cash flow and cash yield upon closing with approximately 68% of the portfolio's gross margin contracted to 2031; attractive recontracting fundamentals longer-term
• TransAlta's Energy Marketing and Trading team to deliver merchant upside and synergies
• Augments and further diversifies TransAlta's contracted portfolio and enhances competitive position in our core market of Ontario, increasing our footprint 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., the equity owners of Far North Power Corporation (Far North), pursuant to which TransAlta will acquire Far North and its entire business operations in Ontario. Far North owns and operates generation assets consisting of four natural gas-fired generation facilities totalling 310 MW. The purchase price for the acquisition is $95 million, subject to working capital and other adjustments. The Company will finance the transaction using cash on hand and draws on its credit facilities.

The assets are expected to add approximately $30 million of average Adjusted EBITDA per year, from 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 close by early first quarter of 2026.

Posted In: HUT TAC TSX:TA