Irving, Texas-based Vistra Energy is paying about $328 million for Norwalk’s Crius Energy, in a deal it said would make Vistra the leading residential electricity provider in the nation, with operations in 19 states and the District of Columbia.
In addition to the purchase price, which Vistra intends to fund with cash on hand, Vistra will also assume Crius Energy net debt of approximately $108 million.
Pending the receipt of all necessary approvals and the fulfillment of all other customary closing conditions, the parties expect the transaction to close in the second quarter of 2019.
Vistra President and CEO Curt Morgan said the transaction “will accelerate Vistra’s retail growth expansion plans via the acquisition of a high-quality electricity and gas retailer serving primarily residential and small-business customers.
“The Crius Energy portfolio has a high degree of overlap with Vistra’s generation fleet and complements Vistra’s existing municipal aggregation and large commercial and industrial portfolio in the Midwest and Northeast markets,” Morgan said.
“We are pleased to announce this transaction and are confident that it is in the best interests of our unitholders and other stakeholders,” said Brian Burden, chairman of Crius Energy’s board of directors. “This transaction is the result of an exhaustive review of strategic alternatives undertaken by our board of directors, with the assistance of outside advisers, to maximize unitholder value and unlock the company’s intrinsic value, while eliminating execution risk. We are confident that this transaction represents the best outcome for our unitholders and other stakeholders and look forward to completing the transaction.”
“We are excited to have reached an agreement with Vistra, a leading integrated power company serving approximately 2.9 million customers with more than 40GW of generation,” Crius CEO Michael Fallquist said. “Partnered with Vistra, Crius Energy will be well-positioned to continue providing our customers and strategic partners with differentiated products and services.”
Under the definitive agreement, Crius has agreed not to declare any further distributions prior to the closing.