Houston-based CenterPoint Energy will acquire Indiana-based Vectren to become a leading U.S. energy delivery, infrastructure, and services company.
Sources stated that under the proposed deal Vectren shareholders will receive US$72.00 in cash for each share of Vectren common stock. According to the release, the deal approved by the boards of directors of the two companies is expected to close by the first quarter of 2019. CenterPoint to fund the deal through a combination of equity and debt.
As of now, CenterPoint has 8,000 employees whereas Vectren has 5,500. The resulting company is expected to operate in eight states and have assets totalling $29 billion. The company’s petroleum gas deals and administrations business likewise have more than 100,000 clients in 33 states. In the interim, Vectren gives flammable gas to more than 1 million clients in Indiana and Ohio and in addition power to 145,000 clients in Indiana.
CenterPoint President, Scott Prochazka will act as CEO and president of the combined company. The Chief Business Officer for Vectren’s electric business will report straightforwardly to Prochazka.
Chairman, president and CEO of Vectren, Carl Chapman said in the release, “With CenterPoint Energy, we’ve found the right partner to begin the next chapter for Vectren and our family of companies.”
Further, Carl Chapman added, “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, Indiana, our home, where CenterPoint Energy will locate the newly combined company’s natural gas utility operations headquarters.”