Veolia Energy North America and Morgan Stanley Infrastructure Partners to acquire MATEP for $320 million

NewsGuard 100/100 Score

NSTAR today announced that it is selling its wholly-owned subsidiary, Medical Area Total Energy Plant (MATEP), to a joint venture comprised of Veolia Energy North America, a Boston-based subsidiary of Veolia Environnement with significant district energy experience, and Morgan Stanley Infrastructure Partners. MATEP provides heating, chilled water service and electricity to several hospitals, medical research and biotechnology centers and teaching institutions in the Longwood Medical Area of Boston. The two companies have agreed to buy MATEP for approximately $320 million in cash, pending necessary regulatory approvals. NSTAR will retire MATEP’s debt.

“We have a long history of providing great service to our MATEP customers, thanks to strategic investments in plant improvements and customer service enhancements”

“We have a long history of providing great service to our MATEP customers, thanks to strategic investments in plant improvements and customer service enhancements,” said Tom May, NSTAR Chairman, President and CEO. “The decision to sell MATEP is part of our determination to focus the future efforts of NSTAR on our core electric and gas delivery businesses and our growing electric transmission operations. We are pleased to have found an energy service provider who has an established reputation as an industry leader along with an existing local presence in the Boston area.”

Once the acquisition has been approved, Veolia Energy, which has a minority ownership interest in the joint venture, will assume responsibility for MATEP operations. Veolia Energy North America operates the largest portfolio of district energy (heating, cooling and cogeneration) networks in the United States, with systems in the central business districts of 14 cities across the country, including Boston and Cambridge. They currently provide service to several Boston medical institutions, including Mass General Hospital, Boston Medical Center, Tufts New England Medical Center, and Biogen.

MATEP’s principal asset is a cogeneration plant that produces electricity, steam and chilled water, and a distribution system that delivers these products to its customers. MATEP has approximately 75 employees.

The sale is expected to close in the first quarter or early part of the second quarter of 2010, subject to receipt of various regulatory approvals. Proceeds from the transaction are anticipated to be used to reduce NSTAR’s capitalization. Goldman Sachs acted as financial advisors and Ropes & Gray acted as legal counsel to NSTAR on the sale. Morgan Stanley acted as financial advisors and Davis Polk Wardwell acted as legal counsel to the Morgan Stanley/Veolia Energy North America joint venture.


The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
Post a new comment

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.

You might also like...
Research reveals loneliness as a complex interplay of social impairments, oxytocin, and illness