TransAlta To Acquire Far North Power For $95 Million To Expand Ontario Generation Portfolio

(RTTNews) - TransAlta Corp. (TAC), a power producer and an electric power generation and marketing company, on Monday said it has entered into a definitive share purchase agreement to acquire Far North Power Corp. for $95 million or approximately $306 per kilowatt.

The deal is expected to close by the early first quarter of 2026.

The assets are expected to contribute approximately $30 million in average adjusted EBITDA per year from 2027 to 2031.

The transaction is expected to be accretive to free cash flow and cash yield at closing, with roughly 68% of the portfolio's gross margin contracted through 2031 and solid longer-term recontracting prospects.

Far North's portfolio includes 120 MW Iroquois Falls, 110 MW Kingston, 40 MW North Bay and 40 MW Kapuskasing, totaling 310 MW.

The company said the acquisition strengthens its position in Ontario by adding contracted, dispatchable assets that support grid reliability and offer long-term re-contracting and land-use optionality.

In the pre-market trading, 3.02% higher $15.02 on the New York Stock Exchange.