Talen Energy, one of the largest energy and power generation companies in North America, announced last month that it is exploring a sale of its Talen Energy Services business line, which includes some of the mechanical contracting industry’s most recognized firms.
Talen Energy Services is comprised of eleven companies located in Pennsylvania, Massachusetts, New York, and Connecticut:
The companies, which are operated by experienced energy services management teams and founders, operate under established local brands and provide comprehensive mechanical contracting services to a diverse array of clients primarily within the industrial (heavy and light), institutional and commercial sectors. Core service offerings include process piping, HVAC construction and service and maintenance, energy service/savings, plant maintenance, sheet metal and other capabilities.
In a report posted March 27, reporter Anthony Salamone, with The Morning Call, a daily newspaper in Allentown, Pennsylvania, said Talen is following a strategy to divest non-core assets and focus on its core power generation business. Riverstone Holdings, which bought Talen last December, also filed a plan with the U.S. Securities and Exchange Commission that laid out its “operational strategy” for Talen to increase cash flow and reduce “non-critical activities.” Those changes could cut operating expenditures by $100 million a year and capital expenditures by an additional $50 million, according to Riverstone.