By Erin McCarthy
Exelon Corp. (EXC) said Wednesday that it would acquire Integrys
Energy Services Inc. for $60 million in a bid to reach more
customers.
Integrys Energy Services is the retail electricity and
natural-gas unit of Integrys Energy Group Inc., with about 1.2
million commercial, industrial, public sector and residential
customers across 22 Midwest, mid-Atlantic and Northeastern states,
as well as the District of Columbia. Integrys Energy Services will
become part of Exelon's Constellation business unit, which has 2.5
million residential and business customers across the U.S., the
companies said. At the end of last year, the unit had $2 billion in
annual sales.
In addition to the $60 million, Exelon will pay adjusted net
working capital at the time of closing. Integrys Energy Services
had adjusted working capital of about $183 million as of May
31.
Integrys Energy Group said it was in the late stages of an
effort to divest its electric and natural-gas retail-marketing
businesses as part of Wisconsin Energy Corp.'s acquisition of the
company.
Last month, Wisconsin Energy struck a deal to buy Integrys
Energy Group for $5.71 billion in cash and stock. The combined
company--which will be called WEC Energy Group Inc.--would be the
eighth-largest natural-gas distribution company in the U.S.,
according to Wisconsin Energy and Integrys. Integrys' energy
assets, which are primarly solar, will remain a part of Integrys
Energy Group.
"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 chief executive.
Integrys Energy Services will operate under the Constellation
brand after the deal closes, though its residential and commercial
customers won't see any disruptions to service and their existing
contracts will be honored, the companies said. The companies expect
to close the deal in the fourth quarter or in the first quarter of
2015.
Write to Erin McCarthy at erin.mccarthy@wsj.com
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