Maxim Power Corp.

Maxim Power Corp.

June 23, 2005 09:15 ET

Maxim Power Corp. Announces Acquisition of Power Companies in France

CALGARY, ALBERTA--(CCNMatthews - June 23, 2005) - MAXIM Power Corp. (TSX:MXG) ("MAXIM") is pleased to announce that it has completed, through its wholly-owned subsidiary, COMAX France S.A.S. ("COMAX"), the acquisition of 100% of the equity interests in three power companies based in France (Energeia S.A., Societe Electrique D'Arnas S.A. and Cogenia S.A.S.). The power companies acquired have a total of 54 Megawatts ("MW") of electric and 18 MW of thermal net generating capacity across seven power plant sites and they are now wholly-owned subsidiaries of COMAX.

The seven power plants acquired include five cogeneration plants (39 MW electric, 18 MW thermal) and two peaking plants (15 MW electric). Electrical output of 47 MW from the plants is contracted under Power Purchase Agreements ("PPA's") to Electricite de France ("EdF"), the state owned power company. The plants commenced commercial operations between 1996 and 1998 and the associated PPA's have initial terms of 10 to 12 years, expiring between 2005 and 2010. Following the initial PPA terms, Maxim anticipates optimizing the installed capacity through a combination of potential PPA renewals and wholesale market sales in the European Union's newly emerging liberalized power market.

Thermal energy (18 MW) is currently sold under long term Thermal Supply Agreements ("TSA's") to ten customers across the five cogeneration sites. Maxim anticipates renewal of these TSA's concurrent with the renewed PPA terms.

The total capital cost of the acquisition is Euro 8.6 million (Cdn$13.2 million) plus the assumption of a Euro 2.6 million (Cdn$4.0 million) capital lease from Caterpillar Financial for a total enterprise value of Euro 11.2 million (Cdn$17.2 million). In addition, the transaction will attract the payment of Value Added Tax in the amount of Euro 1.2 million (Cdn$1.9 million) to be refunded within 6 months. The cash required for the transaction has been provided by related parties through Demand Promissory Notes bearing interest at an initial interest rate of 10% per annum.

This acquisition represents an extremely attractive investment opportunity for Maxim. It provides for strong cash flows from contracted assets with significant upside potential in the form of contract renewals and wholesale market participation. This acquisition contributes to Maxim's goal of adding scale in its two core market geographies of North America and Europe. France continues to be one of the best markets for cogeneration, offering long-term contracts with creditworthy counterparties and an emerging deregulated wholesale energy market.

In addition to MAXIM's three existing projects in France (Pouchon, Mirail and Bataneres), this acquisition consolidates assets with similar commercial and technical characteristics, and will bring MAXIM's generation portfolio in France to 10 plants with a total of 63 MW electric and 27 MW thermal net installed generating capacity.

With the closing of this acquisition and the completion of MAXIM's Basin Creek Power Project (50.2 MW net), the Bataneres cogeneration project (5.6 MW) and the Vancouver Landfill Project expansion (1.5 MW net), MAXIM will have a total of 319 MW electric and 46 MW of thermal net installed generating capacity. MAXIM continues to target significant growth through acquisitions and development of power projects which utilize hydrocarbon based fuels and renewables in the markets of North America and Europe.


Based in Calgary, Alberta, MAXIM is an Independent Power Producer ("IPP"), which acquires and develops, owns and operates, innovative and environmentally responsible power projects. MAXIM currently owns and operates 24 power plants in Western Canada, Continental Europe and Cambodia, having 262 MW of electric and 39 MW of thermal net generating capacity and has a further 57 MW (electric) under construction. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit its website at

Statements in this release which describe Maxim's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the press release.

Contact Information

  • MAXIM Power Corp.
    John R. Bobenic
    President and CEO
    (403) 750-9300
    MAXIM Power Corp.
    Victor S. Dusik
    Vice President, Finance and CFO
    (403) 750-9319
    MAXIM Power Corp.
    Ian Sanchez
    Vice President, Corporate Development
    (403) 750-9305