Wragge & Co LLP Corporate group has advised Welsh Power Group on its acquisition of the Redditch power plant in Worcestershire for an undisclosed amount.

Carron Engineering & Construction Generation Ltd (CEC), a subsidiary of Welsh Power Group, has acquired 100% of the shares in First Energy (Redditch) Limited from a number of private shareholders. CEC will operate and maintain the open cycle gas turbine plant.

Corporate partner Richard Haywood led the team, supported by associate Sarah Massey, energy expert Gus Wood and solicitor Neil Payne. Rhian Vandrill advised on legal due diligence. The team worked closely with Phil Stokes, chief executive of CEC, finance director Nigel Bowers and Frank Shed. James Bennett & Co advised the private shareholders.

Richard Haywood said: "We have a strong track record advising clients in the energy sector on corporate transactions. This is a significant acquisition for Welsh Power and gives CEC an excellent platform for developing a portfolio of smaller power plants. Our mid-market expertise and long-standing relationship with the client made us the ideal choice for this transaction."

Nigel Bowers at CEC said: "Wragge & Co's commitment to this deal was invaluable. Sound legal guidance coupled with excellent commercial insight ensured a smooth financial close process for both Welsh Power Group and the vendor. I look forward to working with the team in the future."

Welsh Power Group Limited is an independent power company including Carron Energy, Uskmouth Power, Severn Power, Haven Power, Nevis Power and Carron Engineering & Construction. It focuses on energy markets in the UK, Europe and the Middle East. Welsh Power Group is part owned by its management team, supported by financial investors led by Deutsche Bank. Wragge & Co has previously advised Carron Energy Limited on its first corporate transaction, marking the formation of the CEC subsidiary of Welsh Power Group.

Redditch power plant in Worcestershire is a 26MW open cycle gas turbine plant. The plant has been operated by the National Grid under a Short Term Operating Reserve (STOR) contract and is used during periods of shortfall in power generation capacity. A STOR contract has been agreed with National Grid up to March 2009. The plant was constructed in the early 1990s by Rolls Royce Ventures for Midlands Electricity.

Wragge & Co boasts a strong reputation in the energy sector. Major energy transactions include acting for BP plc on its $400 million biofuels investment deal with Associated British Foods and DuPont and advising E.ON UK on its deal to create one of the world's largest combined heat and power stations on the Isle of Grain in Kent. Partner Derek Goodban also led a team playing a leading and strategic role in the establishment of the Single Electricity Market for the island of Ireland.

The firm's 70-lawyer Corporate Group is supported by specialists in banking, pensions, employment, real estate and tax, ensuring full-service advice and support for every deal. M&A highlights from the past year include a first deal for Northgate Information Solutions, Sanctuary Housing's merger with Shaftesbury Housing and a trio of deals totalling $1.03 billion for real estate developer Parkridge Group.

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For further information about this press release, contact Kathryn Hobbs on +44 (0)121 213 2397, Alexa Highfield on +44 (0)121 213 2396 or Amie Ryalls on +44 (0)121 213 2360

This press release may contain information of general interest about current legal issues, but does not give legal advice.