Exelon Corp. has agreed to acquire Integrys Energy Group's electricity and natural gas subsidiary for $60 million in a move to grow Exelon's retail power and gas business.
Integrys Energy Services will operate within Exelon's Constellation business unit when the transaction closes either in the fourth quarter 2014 or in the first quarter of 2015, Exelon said Wednesday.
“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 CEO.
Integrys' existing contracts with residential and commercial customers, including the municipal electricity aggregation contract with the City of Chicago, will continue.
Exelon will pay Integrys Energy Group an additional amount based on adjusted net working capital at the end of the transaction.
Lazard serves as financial adviser to Integrys Energy Group and Bracewell & Giuliani LLP provides legal counsel.
Cadwalader, Wickersham & Taft LLP acts as legal advisers to Exelon.