A Texas-based energy company is poised to become the nation’s largest residential electricity provider after making a deal to purchase Norwalk’s Crius Energy, after the company cut jobs last year.
Vistra Energy and Crius Energy Trust announced this week that they have reached an agreement to pay approximately $328 million for Crius, and will assume Crius’ debt of an estimated $108 for a total of $436,000,000. Following the closing of the transaction, Vistra will be the leading residential electricity provider in the nation with operations in 19 states and Washington, D.C.
The sale comes after Crius cut more than 250 jobs last year in an effort to reduce the company’s workforce and expenses.
"We are excited to announce this transaction, which 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," Vistra's President and CEO Curt Morgan said.
"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. We welcome the Crius Energy team to the Vistra family.”
Brian Burden, the chairman of Crius Energy’s board of directors, said “the company is pleased to announce this transaction and are confident that it is in the best interests of unitholders and other stakeholders.”
“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.”
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