The stock of Clearway Energy jumped 2.6% on Monday after the firm sold its thermal business to KKR for $1.9 billion.
Under the terms of the arrangement, Clearway Energy Operating anticipates receiving $1.3 billion in total net cash proceeds.
The thermal business, dubbed Clearway Community Energy in the marketplace, consists of infrastructure assets that offer steam, hot water, and/or chilled water, as well as power, to commercial businesses, universities, hospitals, and governmental customers across the United States.
In the first half of 2022, the acquisition is scheduled to close.
The deal, according to Clearway Energy President and CEO Christopher Sotos, will eliminate the need for the firm to issue fresh equity to fund its committed commitments while also providing capital to fuel future expansion.
The investment will be made as part of KKR's core infrastructure strategy.