Jan. 3, 2012
FOR IMMEDIATE RELEASEMedia contact: Chase Kelley, (812) 491-4128 or kckelley@vectren.com
Investor contact: Robert Goocher, (812) 491-4080 or rgoocher@vectren.com
Vectren Corporation One Vectren Square Evansville, IN 47708
Vectren Source, Vectren Corp.'s retail gas marketing subsidiary, sold to Direct Energy
Evansville, Ind. - Vectren Corporation (Vectren, NYSE: VVC)
sold its wholly owned retail natural gas marketing
subsidiary, Vectren Source (Source), to Direct Energy, one of
North America's largest competitive energy suppliers of
electricity, natural gas and related services.
Source, which is headquartered in Evansville, Ind., provides
natural gas and related services to approximately
280,000 residential and small business customers in Ohio, New
York and northern Indiana.
"Given our company's recent emphasis on growing our
infrastructure and energy services businesses rather than
commodities businesses, such as energy marketing, now was the
perfect time for us to move forward with this sale. We are
pleased to have found a logical buyer in Direct Energy that
is already an active participant in the retail energy markets
and is willing to put additional capital to work to continue
to grow the business," said Carl Chapman, Vectren's chairman,
president and CEO. "We're confident the transition will go
smoothly for Source's customers and that Direct Energy will
maintain the excellent level of service our customers have
come to expect."
"I want to thank the Source employees for building a solid
brand and growing a customer base in three states," Chapman
said.
The transaction was valued at $39 million, plus additional
working capital. The total proceeds from the sale, including
a small one-time gain, were used to pay down short-term debt
resulting primarily from the peak working capital levels
associated with gas inventory and other assets. After fair
value adjustments to the working capital, the net value is
about $30 million.
Vectren will retain ownership of GreenStreet Solutions., a
start-up business with 10 employees that provides on- site
home energy audits and professional energy usage expertise in
and around the Cleveland, Cincinnati and Dayton, Ohio areas.
Source had previously owned and operated GreenStreet
Solutions.
Robert W. Baird & Co. Incorporated, acted as Vectren's
exclusive financial advisor for the transaction.
Vectren Corporation (NYSE: VVC) is an energy holding company
headquartered in Evansville, Ind. Vectren's energy delivery
subsidiaries provide gas and/or electricity to more than one
million customers in adjoining service
territories that cover nearly two-thirds of Indiana and west
central Ohio. Vectren's nonutility subsidiaries and
affiliates currently offer
energy-related products and services to customers throughout
the U.S. These include infrastructure services, energy
services, coal mining and energy marketing. To learn more
about Vectren, visit http://www.vectren.com.
Direct Energy is one of North America's largest energy and
energy-related services providers with over 6 million
residential and commercial customer relationships. Direct
Energy provides customers with choice and support in
managing their energy costs through a portfolio of innovative
products and services. A subsidiary of Centrica plc
(LSE: CNA), one of the world's leading integrated energy
companies, Direct Energy operates in 46 states plus DC
and 10 provinces in
Canada. To learn more about Direct Energy, please visit
www.directenergy.com.
- end -
distribué par | Ce noodl a été diffusé par Vectren Corporation et initialement mise en ligne sur le site http://www.vectren.com . La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-05 17:51:05 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
Documents associés | |
Vectren Source, Vectren Corp.’s retail gas marketing subsidiary, sold to Direct Energy |