Vectren, Texas Company Detail Merger Plans

Posted: Updated:
EVANSVILLE -

A Texas-based energy company with operations in six states has announced a $6 billion merger with Evansville-based Vectren Corp. (NYSE: VVC). Under terms approved by both CenterPoint Energy Inc.'s (NYSE: CNP) and Vectren's boards of directors, Vectren shareholders will receive $72 per share and CenterPoint will assume the Hoosier company's debt. Vectren Chief Executive Officer Carl Chapman says the combined company's natural gas utility operations will be headquartered in Evansville.

"With CenterPoint Energy, we've found the right partner to begin the next chapter for Vectren and our family of companies. 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," Chapman added. "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." CenterPoint says it will continue to operate Vectren's Indianapolis-based non-utility infrastructure services business and its Newburgh-based energy services contracting business.

In addition to the natural gas delivery business, CenterPoint says the combined company's lead executives will be headquartered in Evansville. A chief business officer for Vectren's electric business will be established to handle electric grid modernization and generation transition initiatives recently launched in southwest Indiana. CenterPoint says utility field employees will be retained, as will key utility operational support activities in Evansville. Additionally, CenterPoint says $3 million more per year will be donated to the Vectren Foundation for at least five years after the merger closes.

CenterPoint currently employs close to 8,000 and has more than 100,000 natural gas customers in 33 states. Vectren's footprint includes 5,500 employees and over 1 million natural gas customers in Indiana and Ohio. CenterPoint says the combined company's electric and natural gas delivery operations will be located in eight states and its total assets will be valued at $27 billion.

CenterPoint CEO Scott Prochazka, who will serve as president and CEO of the combined company once the transaction closes, says "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."

The deal is expected to close in the first quarter of next year and still needs Federal Energy Regulatory Commission and Federal Communications Commission approvals.

You can connect to more about the merger plans by clicking here.

  • Perspectives

    • Why HR Should Embrace AI

      With the increased introduction of artificial intelligence, many companies worry about its long-term effects. Although AI has been adopted by many industries, the common fear remains: Will AI eventually take over our jobs? Contrary to this belief, AI can be extremely beneficial in helping humans improve productivity at work,make their day-to-day tasks easier and allow more time for creative tasks only humans can perform. One department that can especially benefit from jumping on the...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Fishers Among Finalists For National Prize

      The city of Fishers is one of 12 finalists for the Robert Wood Johnson Foundation Culture of Health Prize. The award honors "communities that are bringing partners together around a shared commitment to health, opportunity, and equity."

    • (photo courtesy of Howe Military Academy)

      Howe Military Academy to Close

      Howe Military Academy in LaGrange County has announced plans to close its doors after 135 years. In a letter posted on the academy's website, President Thomas Tate cited rising costs and declining in enrollment as reasons why the school will not reopen for the 2019-2020 academic year.

    • Greenwood CEO Named Small Business Person of the Year

      The chief executive officer of a Greenwood-based company has been named the 2019 Small Business Person of the Year for Indiana. U.S. Small Business Administrator Linda McMahon announced Monday this year's winners from all 50 states, the District of Columbia, Puerto Rico, and Guam. 

    • (photo courtesy of Subaru of Indiana Automotive)

      SIA Breaks Ground on Training Center

      Officials from Subaru of Indiana Automotive in Lafayette have broken ground on a new technical training center. The company says the 20,000-square-foot facility will double the size of its current training center. SIA did not say how much it is investing in the new facility. The technical training center will feature a simulated factor floor, up to six training robots, multiple assembly line simulators, classrooms, and a larger computer lab, among other amenities. 

    • Hanna believes crews could begin "turning dirt" in 2020.

      Hanna: South Shore Project Hits 'Major, Major Milestone'

      The president of the Northwest Indiana Regional Development Authority says the South Shore Line West Lake Corridor project will create a crucial "Hoosier gateway in Chicago." The more than $700 million project has received a positive project rating from the Federal Transit Administration, putting it a step closer to up to $440 million in federal funding. Bill Hanna says the rail extension will help Hoosier workers connect to jobs in Chicago that often pay more...