Summary
This 8-K filing from Exelon Corporation (EXC), dated July 30, 2014, announces a significant strategic move for its subsidiary, Exelon Generation Company, LLC. Exelon Generation has entered into a Stock Purchase Agreement with Integrys Energy Group, Inc. to acquire Integrys's competitive retail electric and natural gas businesses. This acquisition, structured as a stock purchase of Integrys Energy Services, Inc. (IES), represents an expansion of Exelon's retail operations into new markets. The transaction is valued at $60 million in cash, plus an amount equal to the adjusted net working capital of IES at closing, which was approximately $183 million as of May 31, 2014. While the core generation and solar assets of IES are excluded, the acquisition of the retail businesses is expected to be completed in late 2014 or early 2015, subject to customary regulatory approvals, including from the Federal Energy Regulatory Commission and antitrust authorities.
Key Highlights
- 1Exelon Generation Company, LLC to acquire Integrys Energy Group, Inc.'s competitive retail electric and natural gas businesses.
- 2Transaction is an all-cash deal valued at $60 million plus adjusted net working capital.
- 3IES's adjusted net working capital was approximately $183 million as of May 31, 2014.
- 4The acquisition excludes Integrys's generation and solar asset businesses.
- 5Closing is anticipated in Q4 2014 or Q1 2015, pending regulatory approvals.
- 6Key regulatory approvals include FERC and Hart-Scott-Rodino antitrust review.
- 7Exelon Generation will assume responsibility for replacing Integrys's credit support for the acquired retail businesses.