URS Corporation and NRG Energy, Inc., joint owners of MIBRAG, have completed the sale of the German mining and power company to another joint venture in the Czech Republic. Private Equity firm J&T Finance Group has teamed up with the largest Czech power company CEZ to acquire MIBRAG at a cost of $520 million.
Both URS and NRG owned equal shares of MIBRAG and split the proceeds accordingly. The deal required approval from the European Commission which was granted late last month.
MIBRAG was established in 1994 as Mitteldeutsche Braunkohlengesellschaft mbH (MIBRAG – “Central German Brown Coal Company”). It’s primary business is the extraction and sale of raw brown coal, but the company also deals in electric power generation, long distance heating, and dust production. With headquarters located in Theissen, MIBRAG operates ten more sites throughout the region, employing 2,100 people. Boasting solid net income reports from 2008, MIBRAG’s newest project is the construction of a new state-of-the-art power plant, to which the new owners have pledged support.
J&T Finance Groups (www.jtfg.com)
J&T Finance Groups is an investment group operating in the Czech Republic and Slovakia. They are one of the main players in the investment industry throughout Central and Eastern Europe.
J&T Finance Groups mainly invests in companies active in the energy, engineering and meat industry market. On a case-by-case basis, J&T Finance also considers investments in other markets.