GC Power Acquisition LLC, which entered into an agreement on July 21 to purchase Texas Genco Holdings, Inc. (NYSE:TGN), announced today it has appointed Jack A. Fusco as its Chief Executive Officer.
GC Power Acquisition, which is owned in equal parts by affiliates of The Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. L.P. and Texas Pacific Group, is expected to complete the initial stage of that purchase – the acquisition of Texas Genco’s coal, lignite and gas-fired power generation plants -- later this year.
Fusco, 42, has more than 20 years of electric utility experience, predominantly in the power generation sector. For the past two years, Fusco has served as an exclusive advisor to Texas Pacific on the acquisition of electric generation assets. Previously, he was President, Chief Executive Officer and Director of Orion Power Holdings, Inc., a publicly-traded company he helped to found in 1998 and subsequently sold. Based in Baltimore, MD, Orion grew into one of the largest independent power generators, owning and operating 85 power plants located in six states.
Following regulatory approval, expected in the first quarter of 2005, GC Power Acquisition will complete the second stage of the two part acquisition, buying Texas Genco, the principal remaining asset of which, at that time, will be Texas Genco’s interest in the South Texas Project nuclear facility. Through the completion of the second stage of the acquisition, David Tees, president and chief executive officer, and other members of his senior management team will continue to run Texas Genco, working closely with Fusco on the transition.
The Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. L.P. and Texas Pacific Group said in a statement: “Jack Fusco has a proven track record of building a great business in merchant generation. We are confident that, as an independent entity, the Company will make great strides under his leadership. Jack’s knowledge and experience will give the company a significant advantage.”
“Texas Genco offers both an experienced workforce and quality facilities which, together, are a strong foundation for future growth and success," said Fusco. "In addition, the sponsorship of four of the highest quality private equity firms provides the capability to finance further expansion when required. I appreciate David Tees’ willingness to work with me during the transition.”
“I look forward to working with Jack in the coming months,” said Tees. “I know he shares my appreciation for Texas Genco’s experienced employee group, physical assets and history of success.”
Prior to the establishment of Orion Power, Fusco was vice president of the Fixed Income Commodity and Currency Division for Goldman, Sachs & Co., specializing in wholesale electric commodity trading and marketing. Prior to his tenure with Goldman, Sachs, Fusco was executive director for International Development and Operations for Pacific Gas & Electric's nonregulated subsidiary. In that role, he was responsible for the development and implementation of PG&E's International Business Strategy and the launching of International Generating Company (InterGen), an international independent power producer focused on emerging markets.
Fusco holds a B.S. in Mechanical Engineering from California State University of Sacramento and is a registered professional mechanical engineer in the state of California.
Texas Genco Holdings, Inc., based in Houston, Texas, is one of the largest wholesale electric power generating companies in the United States with over 14,000 megawatts of generation capacity. It sells electric generation capacity, energy and ancillary services in one of the nation's largest power markets, the Electric Reliability Council of Texas (ERCOT). Texas Genco has one of the most diversified generation portfolios in Texas, using natural gas, oil, coal, lignite, and uranium fuels. The company owns and operates 60 generating units at 11 electric power-generating facilities and owns a 30.8 percent interest in a nuclear generating plant. For more information, visit our web site at www.txgenco.com.
The Blackstone Group, a private investment and advisory firm with offices in New York, Atlanta, Boston, London and Hamburg, was founded in 1985. The firm has raised a total of approximately $32 billion for alternative asset investing since its formation. Over $14 billion of that has been for private equity investing, including Blackstone Capital Partners IV, the largest institutional private equity fund at $6.45 billion. Blackstone has made private equity investments throughout the energy sector including petroleum refining, oil and gas exploration and coal mining. In addition to Private Equity Investing, The Blackstone Group's core businesses are Private Real Estate Investing, Corporate Debt Investing, Marketable Alternative Asset Management, Corporate Advisory, and Restructuring and Reorganization Advisory. For more information, visit www.blackstone.com.
Hellman & Friedman LLC is a San Francisco-based private equity investment firm with additional offices in New York City and London. Since its founding in 1984, the Firm has raised and managed approximately $5 billion of committed capital and invested in over 45 companies. Hellman & Friedman recently completed raising its fifth fund, Hellman & Friedman Capital Partners V, L.P., a $3.5 billion fund. Representative investments include Axel Springer AG (ASV GR), ProSieben Sat.1 AG (PSM GR), Formula One Holdings, Ltd, Arch Capital Group Limited (ACGL), the NASDAQ Stock Market, Inc. (NDAQ), Young & Rubicam, Inc., Western Wireless Corporation (WWCA), Franklin Resources, Inc. (BEN), and others. For more information, visit www.hf.com.
Kohlberg Kravis Roberts & Co. L.P. is one of the world's oldest and most experienced private equity firms specializing in management buyouts, with offices in New York, Menlo Park, California, and London, England. For more information, please visit www.kkr.com.
Texas Pacific Group, founded in 1993 and based in Fort Worth, TX, San Francisco, CA, and London, is a private investment partnership managing over $13 billion in assets. Over the past several years, TPG has built an industry practice focused on the energy and power sectors (Denbury Resources, Portland General Electric (pending)). Additionally, the firm seeks to invest in world-class franchises across a range of other industries, including airlines (Continental, America West), branded consumer franchises (Burger King, Del Monte, Ducati), leading retailers (Petco, J.Crew, Debenhams - UK), healthcare companies (Oxford Health Plans, Quintiles Transnational), and technology companies (ON Semiconductor, MEMC, Seagate).