Canadian Hydro Developers acquisition

In early November 2009, TransAlta completed the purchase of Canadian Hydro Developers. The total value of the transaction was approximately $1.7 billion.

This acquisition accelerated TransAlta’s strategy of expanding its renewables to at least a quarter of its portfolio by 2012, and establishes the company as the leading publicly traded provider of renewable energy in Canada. TransAlta now has an additional 21 facilities that have a net capacity of 694 megawatts in wind, hydro and biomass throughout Alberta, British Columbia, Ontario and Quebec.

The transaction added immediate value to TransAlta’s cash flow, but the cost of the transaction dilutes earnings per share over the next two to three years.