Buyer Announced for Integrys Energy Services Book
July 30, 2014 Email This Story Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • firstname.lastname@example.org
Exelon Corporation and Integrys Energy Group, Inc. announced that they have entered into a definitive agreement for Exelon to purchase Integrys Energy Services Inc., a competitive retail electricity and natural gas subsidiary serving approximately 1.2 million commercial, industrial, public sector and residential customers across 22 Midwest, mid-Atlantic and Northeastern states and the District of Columbia.
Exelon will pay $60 million for the Integrys retail operations, plus adjusted net working capital at the time of closing. Integrys Energy Services had adjusted working capital of about $183 million as of May 31, 2014. The transaction does not include Integrys' energy assets -- primarily solar -- which will remain a part of Integrys Energy Group, Inc.
Integrys Energy Services will become part of Exelon's Constellation business unit, "strengthening Constellation's retail power and gas business, serving approximately 2.5 million residential and business customers across the continental United States," Exelon said.
"Integrys Energy Services' geographic footprint is a perfect strategic fit for Constellation and will create opportunities to reach more customers and grow the business, particularly in regions where Exelon also owns significant generation assets," said Chris Crane, Exelon president and CEO.
Integrys Energy Services will operate under the Constellation brand after the transaction closes.
At December 31, 2013, Integrys Energy Services had $2 billion in annual sales.
Mark Huston, president of Constellation Retail, said the transaction will give Integrys Energy Services customers access to a growing company and a broader array of energy products and services.
"This combination adds scale to our power and natural gas portfolio, creating a stronger, more diverse business that will continue to deliver what our customers want: a trusted partner that offers a full spectrum of energy products and services at competitive prices," Huston said.
The transaction is conditioned on approval by the Federal Energy Regulatory Commission and is subject to the notification and reporting requirements under the Hart-Scott-Rodino Act. The companies expect to close in fourth quarter 2014 or first quarter 2015.