CenterPoint Energy and Vectren to merge
CenterPoint Energy and Vectren Corporation will merge, the companies announced this week.
CenterPoint, based in Houston, is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution and energy services operations. It serves company more than 5 million customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Vectren, based in Evansville, Indiana, is an energy holding company that provides gas and/or electricity to more than 1 million customers in Indiana and Ohio.
The combined company will serve more than 7 million customers across the United States.
Under the agreement, Vectren shareholders will receive $72 in cash for each share of Vectren common stock. CenterPoint Energy will also assume all outstanding Vectren net debt. The merger was approved by both companies’ boards of directors.
“This merger represents a significant step toward our vision to lead the nation in delivering energy, service and value. By combining our two highly complementary companies, we are creating an energy delivery, infrastructure and services leader that will drive value for our shareholders and customers, while enhancing growth opportunities for our businesses,” Scott Prochazka, president and chief executive officer of CenterPoint Energy, said. “From the evolution of customer expectations to the development of innovative technologies, this is a time of extraordinary opportunity for our industry. As a combined company, we will continue to focus on a future that benefits our customers, employees, communities and shareholders.”
The combined company will have electric and natural gas delivery operations in eight states with assets totaling $29 billion.
“With CenterPoint Energy, we’ve found the right partner to begin the next chapter for Vectren and our family of companies,” Carl Chapman, chairman, president and CEO at Vectren, said. “They share the same core values and dedication to the communities they serve, which is evidenced by the commitments they have made to our employees, philanthropic outreach, and Evansville, Ind., our home, where CenterPoint Energy will locate the newly combined company’s natural gas utility operations headquarters. Together, we will be a stronger, more competitive company that will be well-positioned to continue to provide value for our stakeholders in the years to come.”
By merging, CenterPoint and Vectren officials believe they will be able to create opportunities for long-term efficiencies in the delivery of services to customers.
Prochazka will serve as president and CEO of the combined company.
“CenterPoint Energy and Vectren both have outstanding histories and longstanding commitments to serving their customers and communities safely and reliably. We look forward to working with the talented people at Vectren as we integrate our two companies and build on our proven track records of success,” Prochazka said.
The deal remains subject to Vectren shareholder approval as well as approvals from the Federal Energy Regulatory Commission and Federal Communications Commission. It is expected to close by the first quarter 2019.
